RT Journal Article
SR Electronic
T1 Choosing an Appropriate African Equity Index
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 34
OP 41
DO 10.3905/jii.2012.2.4.034
VO 2
IS 4
A1 Daniel Broby
A1 Jennifer Passmoor
YR 2012
UL https://pm-research.com/content/2/4/34.abstract
AB As African equity investing becomes more mainstream, investors are likely to gravitate toward an equity index family for benchmarking purposes. This article describes the challenges associated with adopting an African-based index. African equity markets are diverse and incorporate very different market capitalizations, sectors, and countries. In addition, the lack of liquidity in the various stock markets presents a large challenge. The authors conclude that as a result of the diverse methodologies, no single index truly captures the universe that investors are seeking.TOPICS: Emerging, equity portfolio management, mutual funds/passive investing/indexing