NAIROBI, (The Southern African Times) — African fund managers are optimistic about prospects of the continent’s economies and investment opportunities, a new study that surveyed 50 asset managers released on Monday shows.
The survey reveals asset managers in Nigeria and the francophone West African countries are the most optimistic.
“Some 97 percent of the surveyed Nigerian asset managers are optimistic about the continent, with average assets of 364 million U.S. dollars under management, followed by 85 percent of surveyed francophone asset managers, who averaged 416 million dollars of assets managed,” says the survey.
Optimism is also strong among asset managers surveyed in Mauritius (80 percent), Morocco (73 percent), followed by Kenya and Egypt each with 65 percent.
“The results of this survey confirm the high level of professionalism of African fund managers using world-class standards and criteria in their decision-making,” said Edoh Kossi Amenounve, president of African Securities Exchanges Association (ASEA).
The survey done for the African Exchanges Linkage Project, a joint initiative by the ASEA and the African Development Bank, further reveals market regulation topped at 91 percent for considerations fund managers make before investing in various markets, followed by investor regulation and availability of market data and prices (90 percent), levels of dealing price, efficiency of execution and commission (86 percent), the quality of companies and investment opportunities (86 percent), corporate, social and governance criteria (84 percent) and availability of research (80 percent).
“Three-quarters of investors said they were reluctant to invest in small and illiquid markets or where valuations are excessive. Only half decide to invest in a company based on its dividend policy,” says the survey.