Investing - Go Active or Passive?
For years there has been a debate amongst investors whether to put their monies into actively managed funds, index tracking funds or something in between called Strategic Beta Funds or alternatively ‘Smart Beta’. In the last couple of years there has been a growing demand for passive funds. This move can be explained by regulatory changes that are currently ongoing; the emphasis on the overall cost of investing or lower turnover strategies in line with desired low volatility. Nevertheless, taking into consideration Vanguard’s top 25 funds by assets, then 7 among them are reported as actively managed funds suggesting there is no uniform answer to this dilemma.
The Case for Africa
Africa has for the past few decades been thought of as the world's poorest inhabited continent. However in 2013 Africa was the world’s fastest-growing continent at 5.6% a year and GDP [Gross domestic product] is expected to rise by an average of over 6% a year between 2013 and 2023. Growth has been present throughout the continent, with over one-third of Sub-Saharan African countries showing 6% or higher growth rates, and another 40% growing between 4-6% per year.