Africa has confirmed its status as a low-correlation investment destination during the recent spate of equity reverses on international markets, according to the Imara financial services group, whose Imara African Opportunities Fund rose 1% as world markets softened.
Imara says the fund combines equities from a wide range of African countries.
John Legat, the Harare-based lead manager of the fund, noted: “Only South Africa and Egypt show some correlation to world markets. In all other African jurisdictions, local concerns drive local equity performance.
“Low correlation continues to be a key issue for sophisticated international investors, who use it as a tool to ensure portfolio diversification and improved risk management. In this context, African equities have again proved their worth.” — I-Net Bridge