Benchmarks are central to how investors assess whether a portfolio manager has added value, taken appropriate levels of risk or underperformed expectations. In African equity markets, however, those comparisons can become less meaningful when the benchmark does not reflect the conditions investors actually face.
In a recent Citywire South Africa article, George Tsinonis, Head of Investment Analytics at RisCura, explains how currency dislocations, liquidity constraints and capital mobility challenges can influence reported returns, volatility and risk-adjusted performance.
Using Nigeria as an example, George shows how a fund that remained invested could be measured against a benchmark that either excluded the market or applied a different exchange-rate methodology. The resulting performance picture could therefore change even though the underlying portfolio had not.
The article also explores the implications for investment committees and advisers, particularly when assessing manager performance and risk across Africa’s emerging and frontier markets.
Featured on Citywire South Africa.
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RisCura is a global financial services firm with more than $200 billion in assets under advice and reporting. We partner with institutional investors across emerging markets, bringing specialist investment management, advisory, and analytical expertise to help clients make informed, long-term investment decisions.
Guided by our “Invest with Care” philosophy, we recognise that investment decisions are not only about money and numbers, but about the people and futures they affect. Through tailored solutions, deep research, and a client-centric approach, RisCura helps investors navigate complexity, manage risk, and create lasting value for their beneficiaries.
RisCura is known for its focus on liability-driven investing, responsible investment practices, investment transparency, reliable valuations, independent risk assessments, performance standards, and long-term investment outcomes.
Our capabilities span investment advisory, investment management, investment analytics, institutional platform services, and alternative investment services. Across these areas, we combine consistent methodology and proprietary tools with deep local insight, recognising that each market is unique while responsible investing remains universal.
