Section 1: Thematic Profile
Pension funds and other institutional investors play a critical role in long term finance and capital markets, through the mobilisation and allocation of stable, long term savings to support investment. PricewaterhouseCoopers (PwC) estimates Assets under Management (AuM) in 12 African markets will rise to around US$1.1 trillion by 2020, from US$293 billion in 2008. The growth of AuM is creating pressure for diversification, both from a risk management and return perspective. Yet pension assets remain heavily invested in government bonds and listed equities, despite recent regulatory reforms and Africa’s significant investment needs, contributing little to long-term funding for the real economy and economic growth – as well as delivering potentially lower investment returns.