Fund Manager Bias in Africa: It is a matter of Black and White
Dear Africa interested individuals: Gradually it is becoming more evident that human prejudices that have existed since time immemorial are also impacting the way fund managers make decisions in Africa. The first angle I will look at is the demographic composition of staff of hedge funds that invest in Africa. I have looked at Brazilian, Chinese, Eastern Europe, Asian, South East Asia, Latin American, American, Middle East and African funds. The funds whose investment staffing is least similar in makeup to the region of portfolio inflows is Africa. People of European and American origins dominate African and frontier market funds. This staffing domination is not seen anywhere close to the extent it is in funds invested in non African markets. Why are funds more open to talent from regions of investment focus except when it is Sub-Saharan Africa? The matter is further laid bare when South Africa domiciled A