The South African market represents an anomaly within the global investment universe that positions it as one of the best kept secrets amongst emerging market investment destinations.  Over long periods of time (between 20 and 100 years), it is the only emerging market that has consistently ranked amongst the top 5 performing markets globally in USD terms.  Furthermore, it has consistently outperformed most major global emerging markets indices over these periods.  Such impressive investment returns are in stark contrast to the country’s anaemic GDP per capita growth, reliance on commodities, high unemployment rate and the weakness of its currency.  Instead, extraordinary management skill and stewardship of capital together with market structures which favour incumbents have led to such a disparity.  Other drivers include:

  • South Africa being one of the most liquid emerging markets globally

  • Protection of intellectual property rights ranked amongst the top quartile globally and ahead of all other emerging markets

  • Governance and financial system controls that are amongst the best in the world

  • Highly respected business leaders and entrepreneurs globally

Many of these incumbents have progressively expanded from a South African base to become global powerhouses (e.g., Naspers, SAB Miller, Aspen) or African champions (e.g., Shoprite, MTN).  Wisian Capital’s roots are in South Africa and, based on this experience, we are able to offer global investors a differentiated, SA focused emerging market option with appealing risk-reward properties.

 Wisian Capital’s South Africa Equity Fund was created as a niche emerging market fund providing international investors with exclusive access to this strategy. The UCITS compliant fund is US Dollar denominated and registered in Ireland. Hedging of the South African Rand versus the US Dollar is included in the strategy to reduce currency factor risks associated with the fund.