Old Mutual Global Investors has launched the Old Mutual Pan African Fund, mirroring an existing equity fund of the same name from South African
partner company Old Mutual Investment Group.
This is the first time the asset manager collaborated with its colleagues in South Africa to launch a fund for a global client base.
The new fund aims for long-term capital growth by investing in companies that the manager, Cavan Osborne, expects to benefit from economic developments and growth across the African continent.
This includes those listed on regulated African stock markets and other global markets, where more than 50% of their revenue or profit comes from Africa.
Seeded with $50 million (€39.9 million), the fund will invest in approximately 30 to 40 stocks. Osborne will be supported of Peter Linley, from partner company Old Mutual Investment Group.
Old Mutual Investment Group’s existing Old Mutual Pan African Fund had $11.75 million assets under management at the end of September.
Osborne says: “We believe that now is an excellent time for investors with a slightly higher appetite for risk to invest in Africa. The continent provides a diverse range of investment opportunities and is currently going through a massive growth period with economic forecasts suggesting there are good returns to be had over the next few years.”
Julian Ide, chief executive officer of Old Mutual Global Investors, adds: “This is an exciting development for Old Mutual Global Investors as it is the first time that we have collaborated with our colleagues in South Africa to launch a fund for a global client base.”
Old Mutual Global Investors, the asset management division of Old Mutual Wealth, has assets under management of £17 billion (€21.7 billion).
One of Africa’s largest asset management groups, Cape Town-headquartered Old Mutual Investment Group has over 574 billion South African rand (€41.5 billion) in assets under management.
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