Investing in Africa via my SIPP

[Oi_Oi_Savaloy]

Hi everyone

Just wondering if anyone has any thoughts/advice/recommendations for a fund to invest part of my SIPP in Africa?

Any input gratefully received.

It's a long term play, happy to take a large amount of risk.

Thanks

The savaloy

[Newc]

I think this is one of those few areas where a fund manager can earn their pay. Templeton do a lot of frontier markets; probably worth starting there. Maybe Van Eck too.

[Oi_Oi_Savaloy]

Thanks Newc - I'll do some research on both your kind suggestions.

[ellroy]

There's bound to be an ETF out there as well or some of the investment trust universe?

[Oi_Oi_Savaloy]

Not sure to be honest - I'm just setting out on the research. I'm looking for somewhere that's setting off from a very low base, that's risky but that is an area i have a semblance of knowledge about. We'll see where it takes me.

[Cheib]

I'd be tempted to move away from managed funds and look at a portfolio of individual stocks....these funds will probably have to invest in a relatively large number of stocks as they have rules about concentration limitis....i.e. no one position of more than 1%. The reality is that there are probably only 10 or 20 stocks that really interest the fund managers and there just isn't the opporunity to do proper due dilligence on stocks in this part of the world if you own 100 stocks. There is absolutely no way a fund manager can do proper due dilligence on 100 African stocks.

[ringram]

ellroy said:

There's bound to be an ETF out there as well or some of the investment trust universe?

Yep AFK ETF

Ive been keeping an eye on it

http://etf.stock-encyclopedia.com/AFK.html

IMO Africa is sketchy, its probably a cyclical play due to resources etc.
Perhaps also the next area after emerging markets to pick up, but we shall see.

If the market tanks big time. I might buy in.

[dom9]

My IFA has me in some emerging market stuff but not Africa, specifically.

However, he thinks there is a big potential for growth there (I guess that much is obvious to most) but what is more interesting is that he sees it as one of the better 'bets' at the moment, for growth stability...

I know the oil industry in Nigeria is picking back up again and much of the continent is resource rich and will no doubt be more aggressively exploited over the next few years.