Media

Private Equity impact investing in Namibia

Sapna Shah, the Managing director of Global Impact Investing Network (GIIN) started his 2019 report by saying “I wouldn’t surprise you if I opened this letter with a brief statement on the devastation of climate change or the savagery of unequal access to the most...

ESG – A Global Issue?

The role of the investment industry is key to changing ESG matters, however the processes involved are complex and have far reaching effects.“Environmental”, “Social” and “Governance” – three words that investors hear more and more often, and with good reason....

Millennials aren’t saving enough for retirement – now what?

Millennials represent 50% of existing pension funds’ membership base, yet they make up a mere 5% of retirement fund trustees. This statistic from the Sanlam Benchmark Survey 2018 is indicative of why millennials commonly feel disengaged from the retirement planning...

Pension funds – should performance fees be retired?

While some pundits have argued recently that performance fees have had their day, this is an oversimplification, particularly in the retirement fund industry.In the retail space, investors are essentially price-takers, as they have no negotiation power over the fees...

China a strong opportunity for SA investors, despite trade tensions

Despite ongoing trade tensions with the US, Chinese government policies and proactive market evolution continue to ensure strong opportunities for investment. Around 60% of global equity investments are currently invested into America, yet China is set to become the...

Shanghai-London Stock Connect Scheme launch further demonstrates China’s commitment to opening its market to global investors, says RisCura

RisCura, a global investment advisory and financial analytics firm predominantly focused on emerging markets, has welcomed the launch of the Shanghai-London Stock Connect scheme, saying it will further open the Chinese capital markets and create investment...

The rise of China’s A-shares is gathering momentum despite ongoing trade tensions, says RisCura

RisCura, a global investment advisory and financial analytics firm predominantly focused on emerging markets, has emphasised that Chinese government policies and proactive market evolution continue to ensure strong opportunities to invest in Chinese markets, despite...

For CAs in the making, the right graduate training is crucial

RisCura’s Chartered Accountant Training Programme offers a unique opportunity.As a new graduate looking for a chartered accountant (CA) training programme, the options out there can seem a little daunting. Where you do your training is going to be the foundation of...

Closing Africa’s Infrastructure Gap

Never before has the need for infrastructure felt so immediate and acute. This became apparent to me as I travelled to Nairobi, Lagos, Lusaka and Gaborone during the first three months of this year.A commonality I saw across all these African cities — the yellow metal...

Private Equity in Africa: The Myth of the Weak Exit Environment

Africa’s steady rise continues to attract a growing number of private equity (PE) investors who believe that African markets offer an exciting growth and investment opportunity. Some of the key drivers underpinning this growing perception among investors include...

Does investing for a better South Africa require prescription?

Forcing retirement funds to invest in certain prescribed assets is likely to have unintended consequences.  It’s likely to worsen the already fragile confidence in the economy. It’s also likely to fuel policy uncertainty in areas such as property rights. These views...

The rise of China’s A-shares: Seminar

MSCI included Chinese mainland shares in its indices for the first time in 2018, amid growing interest from global investors and deregulation of the Chinese mainland stock markets to allow direct foreign investment. China’s mainland stock markets in Shanghai and...

Impact Investing

Much is being written about the purported negative effects of prescribed assets on South African retirement funds. The ANC’s 2019 election manifesto hints at the introduction of prescribed assets that is, at its core, a call for allocating assets to impact investment...

Hedge Funds did better than equities last year – but so what?

Hedge funds have been getting a bad rap in recent years due to poor performance coupled with high fees. While both 2016 and 2017 were pedestrian years for hedge funds, stronger numbers came through in 2018. The broader South African equity market was down in 2018 by...

A generation of unwilling pensioners

A somewhat grey and gloomy reality faces most of us as future-retirees in South Africa. High fees, declining returns, and insufficient contribution and saving rates are frequent topics of discussion. As a generation of baby boomers reaches retirement, there’s another...

2019 changes in IPEV standards

As of January 2019 private capital investments valuations will need to be implemented according to the latest International Private Equity and Venture Capital Valuation Guidelines released late last year. With only a month’s notice prior to implementation, the changes...

Clean energy – are definitions and the lack of standardised metrics holding back investment?

Whether or not one fully agrees that we only have 12 years to limit a climate change catastrophe, as per the latest report from the UN Intergovernmental Panel on Climate Change (IPCC), there is an undeniable need to clean up our environment. The rising number of...

Investment in Africa

We released our 2018 Bright Africa research in August. Here is a visual illustration of the Investment in Africa section of our research. For more information on Bright Africa, click here.  ...

Africa’s first infrastructure performance index

We are excited to announce that RisCura is partnering with Africa Investor to launch Africa’s first infrastructure performance index. For years one of the constraints for investment into infrastructure has always been the lack of a benchmark, one of the essential...

Is there really such a thing as passive investing – and does it matter?

There is a common misperception that the passive asset manager’s process is entirely algorithm based and requires no skill or decision-making. But, the reality is that passive managers still need to actively make a range of important decisions that will affect the...

Private equity could boost African entrepreneurs

Private equity funds in Africa are increasingly investing in early-stage businesses in the search for earnings growth. This is partially driven by the rising trend in purchase prices of private companies in Africa as indicated by the recently released Bright Africa...

Addressing pension fund issues is key to Africa’s sustainable development

Africa’s pensions challenge Africa’s youthful population and growing middle class are generally considered positive investment themes for the continent, but will African pension systems be able to serve this youthful cohort when they inevitably grow old? Africa’s...

RisCura wins third consecutive accolade for private equity service provider excellence in Africa

The Africa Global Funds Africa Service Providers Awards has revealed its winners for 2018 with RisCura placing first in two categories; Advisory services: private equity and Research and data provider: private equity. These awards set out to annually recognise service...

Sukuk – a new avenue for funding African infrastructure

In generic terms, economic theory categorises infrastructure assets, as public goods. This means a good or service that is provided without profit to all members of society. The absence of the profit incentive (by default), has placed the provision of public  goods or...

South Africa no longer dominates private equity transaction in Africa

Private equity investors are shifting their focus away from South Africa and finding opportunities to capture growth in the rest of the continent. According to the 2018 Bright Africa Report, produced annually by RisCura, South Africa has always made up a large...

Credibility of PE impact investing in Africa

Despite being only a decade old as an industry, impact investing globally has shown impressive growth and obtained mainstream acceptance. However, there are some credibility concerns, particularly in Africa, that can be addressed with clear industry guidelines. This...

Investing into private equity for African institutions

Institutional investment is a key driver of the development of capital markets. But, in many parts of Africa, institutional investment has been slow to develop and development finance institutions (DFIs) have long filled this gap. In recent years, pension reform in...

Bright Africa continues to shine

Africa continues to turn global investors’ heads, despite its challenges.  Attracted by its many fast growing economies and burgeoning consumer and business spending – expected to reach US$6.7 trillion by 2030 – savvy investors are finding opportunities on the...

The Retirement Journey – Cradle to Grave

Ideally, you should have a stable income to maintain your standard of living throughout your retirement. This is the gold standard for retirement. However, since the South African retirement industry largely abandoned defined benefit (DB) funds in favour of defined...

Why women need to save more for retirement

Women, on average, live five years longer than men. This means their retirement savings need to last them – on average – five years longer. It’s an important message that doesn’t seem to have hit home yet: women need to save more for retirement than men do. And, given...

Changing Africa’s infrastructure funding’s status quo

At a recent conference on funding infrastructure in Africa held in London, the premier destination for conferences about Africa, a fellow speaker lamented the lack of solutions these events yielded. His observation was that the talking points and conclusions at these...

Pension provision in Africa remains low

With 72% of sub-Saharan Africans employed in the informal sector, the traditional pension system is being called into question. The traditional pension system works on the premise that members are formally employed, work for 40 years and contribute regularly during...

How to find the right firm for a Chartered Accountant training programme

Landing an opportunity to do your training as a chartered accountant (CA) at a ‘Big Four’ auditing firm used to be the dream for new graduates. But the job market has changed in the last decade and the top jobs of the future look set to be quite different from what...

African urbanisation – a changing dynamic

On a recent trip to Morocco to attend the 15th Annual Africa Venture Capital Associaiton (AVCA) conference, I had the pleasure of being seated next to and in front of two young families on the aeroplane, both returning home to Morocco after visiting friends and family...

A Nairobi Dream

On a recent trip to East Africa I was lucky enough to experience some of the returning optimism and the sense of an investment community gearing up to take part in the next chapter of the region’s blossoming. The substance and longevity of Africa’s growth story...

Housing shortage an opportunity for high investment yields

Investment is needed in the affordable housing sector. Historically, growth in this sector has been hampered by perceptions of high risk and as a result, undervalued investments. If investors take the time to do their due diligence they could find South Africa’s...

Navigating Naspers in retirement portfolios

South African asset managers are divided on the merits of including Naspers in retirement scheme portfolios; and though for most the answer is ‘yes’, there is division on the level of exposure, ultimately leaving trustees with the burden of making this complex...

Navigating Naspers

 RisCura’s Education Series for Institutional Investors   Many institutional investors feel uncertain given their large exposure to Naspers. Not only does it create single-share risk, it also exposes them to Global Technology, which may be currently overvalued,...

Complex pension trends are leaving retirees cash-strapped

Two new analyses recently showed that South African retirees invested in living annuities risk running out of money, with many already living on half the income they enjoyed just six years ago.  This heartbreaking situation will be exacerbated by the fact that local...

Will gas transform Africa?

In recent years, major discoveries of gas reserves by several African nations seemed to herald an era of cheap electricity, and the prospect of an additional export product to boost foreign currency income. Currently the picture is very different having been stalled...

SMEs provide opportunity for Africa to grow its debt market

Investments into private firms in Africa are funded by a relatively low proportion of debt compared to equity, especially in contrast to developed markets, where debt is more readily available and affordable. This is according to RisCura’s latest private equity update...

RisCura wins AGF 2017 Service Provider private equity award

Investment specialists, RisCura, has won the Africa Global Funds (AGF) 2017 Service Provider Awards in the Best Advisory Provider: Private Equity category, for the second consecutive year. RisCura provides investment decision support and offers a wide range of...

Beyond the grid

Despite its rich energy resources, about 600 million people across sub-Saharan Africa do not have access to electricity, but the rise of micro-grids and advances in technology could be the answer to Africa’s power woes. According to market research company, BMI...

Should pension funds be financing infrastructure in Africa?

Africa’s infrastructure backlog is well-documented, with the World Bank placing it at an annual value of approximately US$93 billion a year. Globally, infrastructure is increasingly being considered as an accepted asset class within a number of pension plans’...

Retirement industry moves toward a Cradle to Grave approach

In an industry-changing move, the amended Pension Fund Act regulations come into effect on 1 September 2017 bringing about welcomed reforms. But, implementation could pose challenges for trustee boards that are already grappling with limited governance bandwidth. The...

Rethinking retirement – why not take the bus?

As people the world over live longer, healthier lives the debate around the design and funding of pension fund schemes shows no sign of subsiding, writes RisCura’s Investment Research Analyst, Fran Troskie. In 2014, then-UK Pensions Minister, Steve Webb, (in)famously...

Digital currency could spark African financial revolution

Cryptocurrency, or simply put, digital currency that uses cryptography as security, and blockchain, the technology it runs on, provide opportunities to reach Sub Saharan Africa’s largely unbanked population – a number that stood at 326 million adults in 2011 according...

Some SA start-ups not that affected by junk status

Despite South Africa’s political and economic issues, local start-ups with innovative ideas are catching the attention of international investors who spot an opportunity to scale these businesses in overseas markets.   A case in point is GetSmarter, a Cape Town...

Pension funds can play a pivotal role in African aspirations for 2063

African equities have recently faced strong headwinds, despite the positive fundamental growth prospects presented by the continent, writes RisCura Africa’s Business Development Executive, Gerald Gondo.   If one considers the negative return profiles of a number...

Lessons learnt – seven ways PE managers can ride the current tough wave

The current muted growth environment in Africa presents a unique opportunity for private equity (PE) managers to demonstrate their expertise and generate value-add without the momentum of a commodity upswing, or a booming Chinese, investment-driven growth trend. Tough...

Investing in SA’s hedge fund market

With hedge funds slowly starting to make their way onto investment platforms, the general South African public can now invest in hedge funds — for the first time ever. Previously, only high net worth individuals and qualified investors were able to invest in hedge...

Trustees said Moody’s would downgrade, Rand will depreciate

At the recent Batseta conference in Sun City, 61% of attendees at a RisCura presentation said, in answer to a spot survey, that Moody’s Investor Service would join Fitch and S&P in downgrading South Africa to ‘junk’ status.   RisCura’s managing director,...

Africa patients offered online helping hand

A recent report found that seven of the 10 fastest-growing internet populations are in Africa Mobile technology is rapidly transforming the way business is being conducted in Africa, particularly in the healthcare industry, as a result of the growth in internet...

Progress on hold as trade barriers constrain Africa

African leaders frequently pay lip service to the virtues of regional integration, but have yet to implement any meaningful change.   One small positive step that a number of countries are slowly implementing is the one-stop border post concept, in which two...

Structure is business-friendly, but new laws are not

The government continues to pursue legislation that is not friendly towards investors   On Friday, 17 March 2017, President Jacob Zuma launched Invest SA, a one-stop shop service for foreign investors. An initiative of the Department of Trade and Industry, Invest...

Changing the retirement landscape

If followed faithfully by trustees, the revised OECD Core Principles of Private Pension Regulation, introduced late last year, will go some way to restoring public confidence in private pension funds in the aftermath of the Global Financial Crisis (GFC). “The...

African fixed income investments coming into their own

Given the continued global search for yield and growth in an increasingly low-yield world, debt markets in Africa should and will attract increasing attention from institutional investors. Pensions and savings institutions around the globe are facing rising...

Improving the way we benchmark private equity performance

The direct alpha method Measuring private equity performance in a standardised and easily understandable way has proven difficult, specifically for those that operate outside of the private equity space. The greatest difficulty is that private equity cannot be...

Pension fund investing – a specialist or a balanced portfolio?

Namibian pension funds appear to prefer investing their members’ contributions in balanced funds, as they believe these offer a better solution. Given the results of a 20-year study from the UK, perhaps it is time to start asking if this is correct. The study,...

South African private equity returns highlight the value of the asset class in building resilient portfolios

The latest performance record of South African private equity, as reflected in the RisCura-SAVCA South African Private Equity Performance Report for the second quarter of 2016, confirms the capacity of this asset class to deliver steady returns in a setting of...

Updated IPEV guidelines

As part of the rhetoric to support Brexit, the “curvy banana and crooked cucumber rules” were highlighted as being the result of overeager Brussels bureaucrats trying to control the every move of the EU member states. Regardless of one’s opinion regarding Brexit, the...

AGF Awards 2016

About the awards RisCura’s Heleen Goussard (Associate) and Debbie O’Hanlon (Senior Analyst) attended the 2016 Africa Service Providers Awards gala dinner on Thursday (27 October) presented by Africa Global Funds. RisCura was honoured with the award for...

Has the Zimbabwean pension’s industry really migrated to DC schemes?

One of the most notable changes happening within the pension’s industry not just in Zimbabwe but across the world, is the shift from Defined Benefit (DB) schemes to Defined Contributions (DC) schemes. Along with this shift, comes the transfer of investment risk from...

Currency devaluation could be good for private equity

An infographic highlighting 3 private equity opportunities in African manufacturing

Q & A with Prasheen on Investing in Africa

What are the most popular channels of investment for Africa? Using specialist managers to access the Africa universe, investors can access: Listed (Africa) equity Private (unlisted) equity Fixed income mandates Infrastructure investments The selection and combination...

Winemag.co.za presents the RisCura White Hot Wine Awards 2016

In conjunction with RisCura, a global financial investment services provider, Winemag.co.za is pleased to announce the fourth annual White Hot Wine Awards featuring Bordeaux-style white blends. The Graves sub-region of Bordeaux excels at under-stated, oak-aged dry...

Currency Devaluation, Where are the Opportunities?

While some African countries that are considered great investment opportunities have seen recent currency devaluation, this could create an opportunity for African manufacturers.  Import substitution has been a significant part of Africa’s economic growth during the...

Private Equity: A force for good

“What improves the circumstances of the greater part can never be regarded as an inconvenience to the whole. No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.”- Adam Smith, The Wealth of Nations...

Winemag.co.za presents the RisCura Red Hot Wine Awards 2016

In conjunction with RisCura, a global financial services provider, Winemag.co.za is pleased to announce the second annual Red Hot Wine Awards featuring Bordeaux-style red blends. The Bordeaux region in the southwest of France is famous for its red blends, the best of...

El Niño – beware the lag effect of this “weather bandit”

While the weather phenomenon appears to have passed, El Niño will continue to impact food security, food prices and humanitarian needs well into 2017, says a new Bright Africa special report from African investment specialists RisCura. Like the archetypal bandit in a...

SA Private Equity records a decade of market outperformance

The latest RisCura-SAVCA South African Private Equity Performance Report, for the fourth quarter of 2015, shows that South African private equity outperformed the South African listed equity market over a ten, five-and three-year period to 31 December 2015.   The...

A big year for private equity fundraising in Africa

Despite the recent turmoil in which many African countries find themselves, global investors showed strong interest in investing in Africa’s real economy, as evidenced by the increase in private equity fund raising in 2015.  Total value of Africa PE funding, by year...

Tough at the top

Size playing a significant role in the price of Africa private equity deals. Over 30% of reported Africa private equity (PE) transactions in 2014 and 2015 took place at greater than a 10x EBITDA multiple*, a strong increase over earlier periods.  Between 2009 and...

Is it Time to Realize Governments’ Unlisted Assets?

As the 2017 general election approaches, there has been debate on the impact of the first Kenyan sovereign bond. On July 6th 2014, the Kenyan government received USD 2 billion from its successful sovereign bond issuance. The positive and strong subscription of the...

RisCura – EAVCA East Africa Private Equity Deal Dashboard

EAVCA in association with RisCura, are pleased to release the inaugural East African Private Equity Deal Dashboard. The purpose of this dashboard is to provide investors and practitioners with an aggregate view of the deals and exits that have taken place across the...

New Data on East African Private Equity Activity

The first ever dashboard on East African private equity deals has been released, another step forward in the quest for solid investment data on the African continent. Put together by global professional investment services firm RisCura on behalf of the East African...

RisCView: January 2016

Monthly performance ranking of investment products

SA Private Equity Resilient Amid Volatile Financial Market Conditions

With investors searching for yield amid global market volatility and slowing economic growth, the performance of South African private equity continues to highlight the benefits of including this asset class into a diversified institutional portfolio. The latest...

Could Selling State Assets Fund Governments Shortfalls?

Once again, the Finance Minister stated in the mid-term budget that state assets would be sold to ‘not let the budget deficit and borrowings creep up.’ But what are they worth? Independent analytics and advisory firm RisCura calculated the values of certain...

Africa: Supply and Demand of Private Equity Funding Capital Skewed

The supply of capital for large cap opportunities in Africa is outstripping the demand for capital.  At the same time, small and mid-caps are underfunded across the continent, with the exception of North Africa.  This keeps the price within a lower range as...

Meaningful African Markets for Investment

Africa is not a single investment destination with a single set of standardised risk factors and homogenous potential for reward. Although some high-level similarities are evident, digging into the specifics of certain regions and countries show that Africa is...

Is East Africa’s Gas Asset Boom About To Go Bust?

Recent oil and gas discoveries across East Africa, most notably in Mozambique and Tanzania, have seen the region emerge as a new player in the global oil and gas industry. As exciting as the huge gas fields of East Africa are, however, the strong decline in oil prices...

Making Sense of Derivatives in Your Investment Strategy

Derivatives are often perceived to be complicated financial contracts left only to the experienced or risk savvy investor. Derivatives are contracts, linked to various securities from which they derive their value. This being said, the actual derivative has no...

Unlisted Investment as a Driver for Namibia’s Economic Growth

In the past weeks I could not help but notice how unlisted investment managers have become the must-see group of people in the industry, as pension funds hurry to find themselves the right managers. Understandably, pension funds had to move fast in order to meet the...

Katutura Old Age Home Gets Green, Solar Driven Water Heating System

Asset consultant, RisCura is extending its support to the Katutura Old Age Home in Windhoek with the addition of a brand new water heating system. “When we discovered that residents had been heating water on the kitchen stove for bath water, which is dangerous, as...

Survey Data: A Blunt Toon in the Toolkit

Let’s assume that investment manager selection is not your daily bread, but you need to select one. Your first stop might be to turn to readily-available manager surveys. But is this really the right starting point? For portfolio construction and manager selection...

Evaluating Risk in the African Energy Market

The recent downturn in commodity prices and the resulting impact on the finances of many African countries has resulted in significant changes in the risk profile of the African energy market. With projects across the financing, construction and operational phases...

Deriving Value from Derivitives

Derivatives are often perceived to be complicated financial contracts, best left only to the experienced or risk savvy investor.  But if used appropriately, the derivative market opens up many doors for risk management rather than speculative trading. Derivatives are...

Hedge Funds have been Declared Collective Investment Schemes from 1 April 2015. Is this Regulation Expected to Encourage Investment in Hedge Funds?

The wait is over, the news that hedge funds have long been awaiting for is finally in act. As of April 1st 2015 hedge funds have been declared as Collective Investment Schemes (CIS). This, although not new news for the market players, will ensure stricter regulation,...

Redressing the Infrastructure Gap – Still a Bridge Too Far?

The World Bank estimates that the cost of bridging the infrastructure gap in Africa requires an annual expenditure of USD 93bn, or less than 5% of the total GDP of the continent. Looking at China where about 8%-9% of GDP was spent annually on the construction of...

African Pension Funds Growing at Fast Pace, Creating Local Pools of Investment Capital

With pension funds in some parts of Africa growing at a remarkable pace, the continent has become its own biggest investor.  This is according to RisCura’s 2015 Bright Africa report, an on-going research effort aimed at assisting investors into the continent. Africa...

Africa its Own Biggest Investor

African pension fund capital has reached $340bn and is growing rapidly. In addition, increasing adoption of insurance around the continent is causing insurance company investment portfolios to grow, and they are now estimated to be around $270bn. These figures come...

RisCura Red Hot Wine Awards

In conjunction with RisCura, a global financial services provider, Winemag.co.za is pleased to announce the inaugural RisCura Red Hot Wine Awards featuring Bordeaux-style red blends. The Bordeaux region in the southwest of France is famous for its red blends, the best...

Bridging the African Infrastucture Gap: Politics or PPPs

Estimates are that traffic jams in Nairobi waste around USD600 000 per day through lost productivity, fuel consumption and pollution. The problem is also exacerbated by a deficit in infrastructure supply. According to the World Bank, in Africa as a whole this...

Changing the Zimbabwean Retirement Landscape

The new Pension and Provident Fund Act that is currently in draft form is set to re-shape the Zimbabwean retirement industry. Indications are that the Act will be adopted within the next two years, and has already received in-depth response and constructive support...

Goals Based Investing

RisCura has been involved in building and implementing investment strategies for various clients globally for over fifteen years. Our clients in Zimbabwe (current and prospective) are no different to those we service in throughout Africa: all our clients are investors...

How smart is your Investment Strategy?

I have been involved in building and implementing investment strategies for various clients for over a decade now. Some of these clients are investors with a long-term focus like pension schemes and life insurers, while others are investors with a short-term focus...

East vs West

African investing: Nigeria or East Africa? Nigeria and Kenya frequently feature as the top investment destinations in Africa, with Nigeria being the clear front runner. Investors, however, are starting to view East Africa as a combined investment region that could...

Growing African pension funds an opportunity for private equity

African pension funds with growing asset bases, due to rising incomes, will need to look beyond traditional asset classes to diversify their portfolios. Given private equity’s long-term nature – the typical life cycle of a fund is 8-10 years – the asset class is an...

Accessing African Growth

Leading global investors increasingly understand the case for African investments. A sustained growth rate of over 6% a year for the past 10 years is certainly compelling; but how to access that growth efficiently and effectively?  Listed equity is the natural...

The African financial services gold rush

The financial sector has been a favourite of investors into Africa for some time. The long-term nature of the investment, the direct link to the expansion of the wider economy and individuals’ increase in discretionary incomes have all been factors that have supported...

Africa on board with renewable energy

The recent UN renewable energy pledge joined by the Rockefellers has drawn much attention, and calls for a divestment from fossil fuels in favour of renewable energy investments. Stephen Heintz, Director of the Rockefeller Brothers Fund, says that the irony of a...

Ebola crisis affects cocoa industry

The rise of Africa as an investment destination is particularly encouraging considering the unique challenges characterising many fast-growing countries. These include a lack of infrastructure, which the World Bank predicts will cost USD 75bn per year to resolve, and...

Good Thinking for South Africa’s Most Exciting New Wines

Our clients have come to trust our abilities, integrity and commitment, to not only support, inform and advise, but also to empower them to make better financial decisions. That’s why RisCura sponsors the White Hot wine awards. Like investment decision-making,...

African Eurobond issues on the rise

After the debt relief provided to African states during the early 1990s, the balance sheets of many African countries were largely debt free. However, governments were reluctant to take on higher levels of debt, for fear of returning to the debt crisis of the 1980s....

Distribution in Africa: Finding the path to market

The lure FMCG companies find Africa enticing and with good reason: It has a young and growing population that is moving into urban areas. Further, the GDP growth is outpacing population growth resulting in a high GDP growth per capita, improving the spending power of...

Africa ‘bright’ indeed

Given Africa’s sustained growth rate of over 6% a year for the past 10 years, paired with slowdowns in some other emerging markets, global investors are paying more attention to Africa, and need to understand whether the continent has a place in their portfolios; and,...

Proving the Attractiveness of Listed Markets in Africa

It is becoming increasingly clear that African listed equity may serve as a complement to any general investor’s portfolio. With sufficient analysis to determine where the real risks lie, the growth potential and diversification benefits of African markets are...

Defined benefit plans – less is more

Spoilt for choice. That’s us. Consider, for example, the barista-in-a-box coffee machines that are all the rage – the ones that use those little coffee capsules.  The array of choices available is not only confusing, it’s terrifying.  What brand should you...

Winners for a reason

Why do private equity firms prefer certain markets in Africa over others? When one examines the risk factors for high growth in Africa, it is clear why these markets receive such high levels of interest. There are a couple of major risk factors for high growth in...

Africa: a period of elections and the economic outlook

The African continent continues to expand and is receiving increasing focus from investment houses worldwide. The myriad untapped resources and economic opportunities provide many areas for potential frontier market investments. With such a large and diverse range of...

East Africa set to rise

In 2013, East Africa saw increased activity in the oil and gas sector. Tullow Oil plc rounded off the year with a fifth successive oil discovery in Kenya. This comes approximately four years after the company discovered an estimated 310 million barrels to 710 million...

Global survey demonstrates pension funds are turning their attention to Africa

RisCura, the investment advisors specialising in emerging and frontier markets, along with the African Private Equity and Venture Capital Association (AVCA), and the South African Venture Capital and Private Equity Association (SAVCA) today announced the results of a...

Watch trading costs and help guard retirement savings

Saving as little as 1.3% on trading costs can result in 21% more capital at retirement. The institutional investment value chain finds itself operating in an environment with an ever-increasing focus on costs: from administration fees to performance and management...

Understand Africa’s uniqueness and be rewarded in 2014

The investment prospects for Africa as a whole are exciting and offer the potential to provide great long-term returns, according to Josef Odili, Head of Africa Manager Research at RisCura. “The key is to have a thorough understanding of each country’s unique...

Turning on the Christmas lights

Those who know me know that I am a Grinch when it comes to Christmas. If mince pies and mulled wine were really that nice we would eat and drink them all year long! But what the arrival of Christmas does mean is that on my latest trip to Heathrow the Economist’s...

Replacement ratios in retirement

A replacement ratio is the ratio of the income you receive from your pension once retired, to the salary you were receiving just before retirement. For example, if your pensionable salary just before you retire is R10 000 per month and your replacement ratio is 80%,...

Bright Africa 2014: a request for data

RisCura Fundamentals launched the inaugural Bright Africa report in April this year. The annual report provides a unique look at equity investment across the continent, and continues to be the first and most comprehensive report on the price of PE deals in Africa....

South African private equity delivers steady first-half returns

The latest RisCura SAVCA South African Private Equity Performance Report, for the second quarter of 2013, confirms that the asset class continues to deliver steady returns that compare favourably with those reported for listed equity. “RisCura’s survey findings once...

Hedge funds – local is different

The top three reasons for investing in hedge funds are typically diversification, composite portfolio strategy enhancement and decreased volatility.  However, these all proved challenging for global hedge funds when the financial crisis hit. Globally, hedge funds lost...

RisCura expands UK team with two more specialist hires

RisCura, the investment advisors specialising in emerging and frontier markets, today announced the expansion of their UK team with the appointments of Josef Odili as Head of Africa Research, and Conrad Visagie as Quantitative Analyst. Commenting on the appointments,...

Announcing SA’s top three Sauvignon Blanc-Semillon blends

At the first RisCura White Hot wine awards held yesterday at Landtscap, the top three Sauvignon Blanc-Semillon wine blends in the country were announced. Out of the 41 wines submitted by 30 different producers, the top three are Celestina 2012, Steenberg Magna Carta...

Raise your glasses to the top three wines

Raise your glasses to the top three wines Steenberg Magna Carta 2011 (5*) Price: R495 (due for release March 2014) WO Constantia Abv 13.5%, RS 2.5g/l, TA 7.2g/l, pH 3.1 60% Sauvignon Blanc, 40% Semillon. Semillon fermented and matured for two months in 500-litre and...

Returns from Africa come from growth and expansion, rather than debt leveraging

RisCura, the investment advisors specialising in Africa and emerging markets, today advised that, in contrast to more developed nations, the returns possible from private equity investment in Africa come from positive growth and not debt leveraging. Rory Ord, Head of...

Debt a small portion of African Private Equity deals

Private equity deals in Africa are financed with far less debt than deals concluded in developed markets.  This means that returns have to come primarily from actual profit growth as opposed to leverage. “On average in Africa, only a third of unlisted...

Returns of the past

Looking at past performance when selecting an asset manager It’s often said that the past performance of an asset manager is no guarantee of future performance.  While this is true, past performance still needs to be considered when selecting an asset...

Getting up to speed

With 20 years’ experience of converting from DB to DC, South Africa points the way ahead for the UK suggests Petri Greeff, RisCura It has been hard to miss. Africa has been in the media rather a lot – and with good reason. In just the last month, publications like The...

Concerns about risk and volatility risk won’t affect investment in Africa

RisCura, investment advisors specialising in emerging markets, specifically Africa, today said that the global search for yield and diversified return will continue to see investors viewing Africa with interest this year, despite industry unease about the...

Pension fund investing – the specialist vs. balanced debate

From time to time the pension fund industry re-visits the question of whether the best route to achieving the optimal result is to invest in a balanced fund or opt for a series of specialist mandates.  In recent years, trustees appear to have adopted the view...

Retirement fund industry struggles with Regulation 28

The postponement of deadlines several times last year shows that retirement funds are battling to meet the reporting requirements of the revised version of  Regulation 28 of the Pension Funds Act, which governs what these funds can hold, and in what...

Bright Africa: A look at transaction multiples across the continent

Yesterday RisCura Fundamentals launched Bright Africa, a new report that provides a uniquely comprehensive look at the price of investing across the continent. With investors from around the world looking for growth in a post-financial crisis world, the Bright Africa...

Bright Africa: a new report from RisCura Fundamentals

CAPE TOWN – A new report, Bright Africa, provides a uniquely comprehensive look at transaction multiples across the continent. With investors from around the world looking for growth in a post-financial crisis world, the Bright Africa report demonstrates that to...

Bright Africa: A look at equity investing across the continent

Join the global launch of Bright Africa, in London RisCura's Bright Africa report aims to assist investors looking at African equity as a way to access this growth. It covers the areas of Africa showing growth and compares this to the growth of other emerging...

Valuation, Performance Measurement and Risk Management in Private Equity

Arnold Ekpe, CEO of Ecobank recently stated: “We don’t have an African strategy, Africa is our strategy.” Ecobank is one of several African private equity success stories of the past decade, growing from a small regional bank to a pan-African bank...

Investing in Africa in 2013

The global search for yield will continue to see investors viewing Africa with interest this year, despite corporate governance and other concerns about the continent.  To the end of November last year, the FTSE/JSE All Africa (ex-South Africa) 30 index, which...

Choosing your fund manager

When deciding which fund manager to invest with, the first step is to identify your investment goals and strategy, including your investment horizon, as well as what kind of returns you are looking for. “You may be saving for the long-term, perhaps for...

International Private Equity and Venture Capital Valuation Guidelines – Dec 2012

A revised version of the International Private Equity and Venture Capital Valuation Guidelines (“IPEV Guidelines”) was issued on 17 December 2012. The revised Guidelines are intended to be applicable across all private equity funds and to all financial...

African private equity coming of age

Increased interest by international investors, and a shortage of listed companies, is bolstering private equity in Africa.  Rory Ord, head of RisCura Fundamentals, which provides independent valuation, risk and performance analysis services, says the paucity of...

Know your funding level when saving for retirement

When saving for retirement, members of defined contribution (DC) pension funds should start with a realistic look at how much income they’ll need when they retire, and what sort of capital will be required to fund that income. They then need to continually keep...

Large asset managers outperform inflation

The largest asset management houses comfortably beat inflation over both one and three years to the end of October 2012. This is according to the RisCView Big 12 Barometer from RisCura Consulting, which was released today.  An important tool for the retirement...

AfricaSIF.org Launches First-Ever Pan-African Research Project on Investment Management and ESG

– 28 September 2012 Embargoed until midnight SAST 27 September 2012 – CAPE TOWN, South Africa, 28 September 2012 – How much investment in Africa today proactively integrates environmental, social and corporate governance (ESG) factors? A new research...

Driving the improvement of retirement fund investing standards

Over our twelve-year business history, the foundation of our business has been to drive the improvement of retirement fund investing standards in South Africa and beyond. Our push for technical excellence has made us develop tools for the South African and African financial services industries that assist in making the industry a more transparent, more appropriate, less risky and safer place to invest for institutional investors. We are proud of our achievements and the resultant positive impact they have had on the broader investment industry.

Regulation 28: Hedge Funds Performance – The South African experience

In the previous article on hedge funds, we mentioned that the South African hedge fund industry is relatively young compared to the global market. The first South African hedge fund was launched in 1998, a fair few decades after the fund started by Alfred Winslow...

Regulation 28: Hedge Funds – Additional Scope for Pension Funds

When it comes to optimising pension fund portfolios, the new Regulation 28 of the Pension Funds Act gives trustees more arrows in their quiver. By allowing pension funds to increase their exposure to hedge funds to a maximum limit of 10% of portfolio allocation, the...

Regulation 28: Should SA pension funds allocate more capital to private equity?

Before the redraft of Regulation 28, the amount of capital SA pension funds could allocate to private equity was ill-defined. This was largely because regulators didn’t fully acknowledge the importance of this investment vehicle. Under the revised Regulation 28,...

Responsible investing – where do you start?

Learn the regulatory frameworks on integrating ESG into investments Since 2007, PF130 has actually included sections on responsible investing and clearly states: “Funds should include a policy on socially responsible investments (SRI) in their investment policy...

Regulation 28 puts responsible investing firmly on the agenda

“We are living off the Earth’s capital – we need to live off the interest.” Achim Steiner, Executive Director of the United Nations Environment Program The preamble of the new Regulation 28 of the Pensions Fund Act states that prudent investing...

IFC Press

IFC-SinCo reports US$125 billion in Sustainable Investment in Sub-Saharan Africa IFC, a member of the World Bank Group, has released the most comprehensive study to date of Sustainable Investment (SI) in Sub-Saharan Africa (SSA). The report is based on research by...

RisCura South Africa Private Equity Performance Report

We are pleased to release the first version of the RisCura South African Private Equity Performance Report.This report tracks the performance of a representative basket of South African private equity funds and will be released quarterly on an ongoing basis.The...

Catalyst: Revision to Reg 28 gives private equity a chance to prove its worth

In December 2010, the National Treasury issued a second take on the revised Regulation 28 of the Pensions Fund Act. Reg 28 sets prudential limits on the allocations that South African pension funds make to different asset classes and has historically restricted...

Report February 2004, Calculating Credit Spreads Using the BEASSA Zero Curve

RisCura’s Relationship with Legae Securities RisCura reserves the right to co-publish research with any partner of our choice. Our choice of partners is determined by our commitment to enterprise development, a key area of our empowerment drive, and by our...

Report July 2003, Introducing the Yield Curve as a Tool in Credit Risk Analysis

We generate a yield curve that approximates the risk-free yield curve. Since government bonds are considered virtually default-free, the GOVI benchmark bonds (a selection of the most liquid fixed rate government bonds) form a term structure of nearly risk-free...