Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a708840
Sanlam drops performance fee on stellar African frontier fund
by Robert St George on Oct 11, 2013 at 12:49
The performance fee on the Sanlam African Frontier Markets fund has been axed, amid a strong run for the fund.
As well as a 1% annual management charge on the institutional C class of shares in the fund, a 20% performance fee was applicable when the fund beat its benchmark.
So far this year, the £45 million fund has returned 12.3% compared with 5.2% from the MSCI EFM Africa ex South Africa index. Since inception in 2010, it has generated 19.6% against the benchmark’s 2.1%.
Manager Stephane Bwakira has backed Nigerian and Kenyan banks to maintain this performance through the final quarter of the year, expecting ‘good results from most Tier 1 banks’ in their quarterly updates at the end of the month.
Bwakira (pictured) argued that this ‘should see both markets closing the year in positive territory given that financials have a huge weighting in the equity indexes for both countries’.
Almost half the fund is invested in financials, with Nigeria and Kenya representing 58% of the portfolio.
News sponsored by:
Today's top headlines
More about this:
Look up the funds
Look up the fund managers
On the road
on Dec 10, 2013 at 12:57