Choosing an Appropriate African Equity Index

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CFA Digest
August 2012 | Vol. 42 | No. 3
Source: CFA Institute
Daniel Broby Jennifer Passmoor
Thomas M. Arnold, CFA (Reviewer)

Abstract

The authors assess the available equity indices for African investment. The African continent is generally considered a “frontier market,” but such a classification does not fit all of the markets in Africa very well. Furthermore, existing indices tend to be biased either in sector representation and/or liquidity issues. Such biases can make existing African equity indices unsuitable for evaluating fund manager performance.

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Topics
Equity Investments
    :
  • Equity Markets - Characteristics, Institutions, and Benchmarks
|
Performance Measurement and Evaluation
    :
  • Benchmark Selection
|
Portfolio Management
    :
  • Equity Portfolio Management Strategies
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