Momentum Global Investment Management, the UK-based business, has launched a new Africa Fixed Income Fund.

The fund, which is managed by David Lashbrook, head of Africa fixed interest markets, MGIM, and supported by Zee de Gersigny and the Momentum Africa team, will use a range of complimentary underlying investment specialists based in the UK and across Africa. It is aimed at institutional investors looking to benefit from opportunities arising from the economic and demographic fundamentals that Africa has to offer, the firm said.

“Whilst still in their infancy and clearly not without risk, African fixed interest markets offer investors a compelling investment opportunity. The fact that the markets are less developed has allowed well-informed active managers to achieve significant returns for investors in the past. This is likely to continue into the near future, given the strong tailwinds of economic growth and improved governance,” said Lashbrook.

“Until recently, African fixed income markets north of the Limpopo have typically been extremely small and generally of short duration. Issues were usually swallowed up by local pension funds and insurance companies who bought and locked them away until maturity. This is changing however,” added Lashbrook.

Momentum currently operates in the following African countries: Botswana, Ghana, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, South Africa, Swaziland, Tanzania, Zambia.