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Bailey McCann, Opalesque New York:

Novare Investments second annual Africa funds survey shows growing interest in the continent. Report data shows that capital flows to Africa focused funds are becoming more steady, a trend which is expected to continue as more African countries develop and mature. 39 funds participated in the survey, amounting to approximately US$3.180bn of assets under management. Half of the funds participating in the survey have a track record of five years or longer, and 30% of the funds participating were UCITS compliant.

Africa is home to 6 of the 10 fastest growing economies worldwide, and return starved investors are paying attention. According to data in the survey, eight sub-Saharan African Countries (SSAs) are expected to produce GDP growth rates well above 6.0% this year, with another 13 on pace to do the same in 2014 - figures that make 2% US GDP growth look more developing than developed.

Even with these stellar growth projections, equities markets in individual African states can be wildly different from each other. "Investors in African financial stock markets have witnessed a wide dispersion in the returns produced by individual markets. In dollar terms one of the best returns over the 12 months to 30 June 2013 (as measured by the MSCI Indices) was the Ghanaian market with 108.4%, while one of the worst performers was the Egyptian market which ended the period 13.6% lower," authors write.

Still, investors in Africa fun......................

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