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Africa ETFAMI SeriesInvesting

Quarterly report 2018 Q3

10 years since the global financial crisis and Africa is doing better than before.

AMI Big50 ex-SA ETF

During the previous quarter, as many as 6 high level delegations have visited the continent, all with the aim of strengthening relations and being a part of the continent where 6 of the 10 fastest growing global economies are. As the developed markets embark on an interest rate increase cycle, majority of African state such as Morocco, Ghana and Rwanda maintain their interest rates at current levels. Notable IPOs were also present with MTN Ghana raising GHS 1.2 billion and Energy Bank also set to raise sizable funds in the same nation. Zimbabwe, Ghana and Malawi’s composite indexes posted strongest growth in this quarter posting gains of 23%, 5% and 6% respectively, while Nigeria continues to lead the way of declines, followed by Kenya easing 15% and 14% respectively.

The portfolio re-balanced in the month of September, Seven constituents with a combined weighting of 5.32% have been replaced with constituents with a combined weighting of 3.37%.

New additions: Ok Zimbabwe, Custodian And Allied Insurance, Sdv Saga Ci, Total Ci, SGB Ci, SODE Ci and Copperbelt Energy.

Removals: Kenya Re-Insurance Corp., Atlanta, Carthage Cement, Tanzania Port.Cement, Seplat Ptl.Dev. (Nsa), Shell Ci, Zambia Nat.Coml.Bank.

Fund factsheet:

Risk rating: Medium |

Closing price: R 13.05 |

Number of units: 1,325,917 |

Total Expense Ratio as targeted: 0.75% |

Distribution: ZAR cents 0.00


AMI Real Estate ex-SA ETF

The AMI Real Estate listed on the 1st of June 2018 at R44.00. The index coverage spans over the following countries; Botswana, Egypt, Ghana, Kenya, Mauritius, Morocco, Mozambique, Nigeria and Tanzania. The latest analysis by the Global Real Estate and Transparency Index (GRETI) has shown an improvement for African countries, led by Nigeria and Kenya. Overall we continue to see advances made in areas such as the quality and frequency of valuations across many markets in Africa.  Inter-country co-operation within Africa, which goes against the global international trend towards protectionism years and has been favourable for attracting inward investors, delivering big inter-country infrastructure projects and possibly getting to a more harmonised system on land use and planning systems. The hospitality industry leads the way in Africa, while retail is another popular area, thanks to the existence of growing, young, middle class African populations with rising incomes. Furthermore, increasing urbanisation, a trend that is set to continue for the foreseeable future, means that the residential sector is another area that should provide big opportunities.

Fund factsheet:

Risk rating: Low |

Closing price: R 45.50 |

Number of units: 20,933 |

Total Expense Ratio as targeted: 0.70% |

Distribution: ZAR cents 0.00