Eurozone equities continued to be viewed more positively than last month, increasing by six percentage points (6pp) to build on the seven percentage point (7pp) increase in September. With the European Central Bank’s continued quantitative easing programme potentially having an impact, this is the third consecutive monthly improvement for the asset class.

In a reversal of fortunes, the perceived safe havens of gold (-2pp) and UK government bonds (-1pp) were the two asset classes to see marginal falls in sentiment in October, as returning confidence may have encouraged some investors to look towards those asset classes with a greater perceived risk-reward potential.

UK property continues to surge ahead as the stand out asset class when it comes to investor sentiment. With a further six percentage points (6pp) increase in sentiment in October, overall investor sentiment towards this asset class stands at 53%, far higher than the next highest, UK equities, at 24%.

Ashish Misra, Head of Portfolio Specialists at Lloyds Bank Private Banking, said, “With the US Federal Reserve not raising interest rates in September, and ongoing concerns over China, there is still much uncertainty in the global economy. It is encouraging to see investor sentiment increase, however, and the strength of the sterling denominated asset classes, which continue to keep levels of sentiment in positive territory.”

Asset class performance

In September, actual market returns were more negative than the improvements in sentiment would suggest. Only UK property and UK government bonds saw significant increases of (2.3% and 1.7% respectively). Eurozone shares saw the biggest decrease in returns (-3.2%), followed by commodities (-2.7%) and emerging markets shares (-2.4%).

In terms of the change in actual performance over the last three months, seven out of the 10 asset classes recorded a fall in returns earned, with commodities (-18.4%) and Japanese shares (-11.5%) seeing the biggest declines. UK government bonds lead the way in terms of the largest growth rate (4%), followed by UK property (2.4%).

The post UK property continues to surge ahead appeared first on International Finance.

Miriam Mannak

February 13, 2015: Up until recently, Africa was a place best avoided. Apart from its natural resources, the continent was deemed pretty much insignificant. This notion has changed fundamentally over the past decade or two. Figures by the United Nations Conference on Trade and Development (Unctad) show that Foreign Direct Investment (FDI) inflows grew from $10 billion in 1999 to $55 billion last year.

Robert Hersov, CEO and founder of Invest Africa, has an explanation for that. “Governance and regulatory frameworks have improved over the past years. In addition, people are no longer taking money out of Africa as more and more Africans are investing in their continent,” he said during the 2015 Mining Inbada conference, which took place in Cape Town, South Africa, from February 9-11. “More and more Africans, who once left the continent, want to come back because of the opportunities. The continent is going into the right direction rapidly. Five years ago, everyone was talking about the BRICS block. Now, everyone is talking about Africa.”

Hersov wasn’t the only optimist attending the Mining Indaba, which is currently the world’s largest mining and investment conference. “Every single day, we speak to investors who want to invest in Africa. The perceptional risk has changed,” said Paolo Scaroni, Deputy Chairman of financial advisory firm Rothschild. “The risk of Africa is not as high as it used to be. There are some challenges, of course. Electricity, for instance. Over half the population in sub-Saharan Africa does not have access to electricity. Without electricity there is no development. This needs to be solved.”

Whilst mining will undoubtedly continue to foster growth across Africa, other industries are expected to gain importance in the near future. “E-Commerce will be one of game changers,” says Ugandan businessman Ashish Thakkar, founder of the Mara Group. This conglomerate comprises financial services, infrastructure, technology and real estate businesses, and has a presence in 24 African countries. “It comes down to having the right products and the right platforms.” Thakkar added that the world can also expect African technological innovations in the future.

AshishThakkar Founder Mara Group

“Everyone keeps talking about brining Silicone Valley to Africa, but the question is how we take Africa to Silicone Valley,” he said, adding that Africa is already producing innovations. One of them is M-pesa, which was developed in Kenya. The mobile currency has since made its way across the continent, providing financial inclusion to millions of people. “Africa is not catching up with the rest of the world. This is our time already!”

Tonye Cole from Nigeria, co-founder of energy conglomerate Sahara Group, is equally positive about Africa as a business destination. “It is the only continent that has something for everyone,” he said. “Anyone can do something in Africa, from an entrepreneurial point of view. This region has produced great entrepreneurs who are doing things we never thought were possible here.”

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