African Investment Management Firms Key Terms

Learn some terms that can help you navigate African investment management firms

By Elise Matz, Writer Speaking Term Productions

African investment management firms are centered mainly in South Africa, but growth in the financial sector is spreading to other areas of the continent as well. As Africa moves towards developing infrastructure and sustainable industries, many financial management firms are leading the way. In addition to investing capital in underdeveloped markets, there is a new push to factor in the human and environmental costs associated with economic growth. The African financial market is also working towards transparency and ethical standards to encourage investment.

Association for Savings & Investment SA (ASISA)

The Association for Savings & Investment SA (ASISA) is a trade group for bankers and financial managers in South Africa. Its mission is to promote a healthy financial services sector, maintain ethical standards in the financial industry, and encourage saving and responsible investment.
Try: Visit ASISA to find out more about the group's history and purpose.

Global Investment Performance Standards (GIPS)

The Global Investment Performance Standards (GIPS) were established to make sure investors worldwide have access to the information they need to make solid investment decisions. Fair and transparent reporting standards allow investors to evaluate investment managers, in Africa and elsewhere.
Try: Visit the CFA Institute, the organization that developed the GIPS, for more information.

Shariah compliant investment and the Shariah Top 40 Index

Shariah is Islamic law drawn from the Koran and the teachings of the prophet Mohammad. Among other things, the code lays down financial rules; for instance, Shariah makes it illegal to profit from lending money. Instead, profit must be the result of trade or investment. The Shariah Top 40 Index was developed by JSE and the FTSE Group, as these companies saw a demand for Shariah compliant investment products in South Africa.
Try: See Huliq News for more information on the Shariah Top 40.

Environmental, social and corporate governance (ESG)

Responsible investors are beginning to pay attention to more than just profit and loss. Some are now factoring in environmental, social and corporate governance (ESG) risks when deciding which companies to invest in.
Try: Top100funds.com has more information on how investors are computing ESG risks in Africa.

FTSE/JSE Africa Index Series

In addition to the Shariah Top 40, FTSE Group and JSE developed a series of indexes to follow the performance of important sectors in South Africa.
Try: Visit the FTSE Group to track the value of the Africa Index Series, and see index rules and reviews.

Pan African Infrastructure Development Fund (PAIDF)

PAIDF was set up to encourage sustainable investment in Africa's infrastructure, in hopes of helping the continent's economy grow more quickly over the coming decades. It is staffed by investment professionals who are experienced in African infrastructure deals.
Try: Visit Harith, the administrator of PAIDF, for more information, including a list of investment firms involved with the fund.