Publication Launch Replay: Gauging Appetite of Domestic Institutional Investors for New Asset Classes
16 June - The International Finance Corporation (IFC), the African Development Bank (AfDB) and Making Finance Work for Africa (MFW4A) Partnership organized the virtual launch of their joint publication entitled: "Gauging Appetite of Domestic Institutional Investors for New Asset Classes".
The study examines how and to what extent institutional investors in seven Sub-Saharan African focus markets—Botswana, Ghana, Kenya, Namibia, Nigeria, South Africa, and the West African Economic and Monetary Union (WAEMU)—have been allocating assets to alternative asset classes[1] over the past several years. This research commendably tests the appetite for various existing and proposed investment vehicles/structures targeting local institutional investors, with a view to informing their design. The study’s cross-market findings are intended to help national capital market stakeholders and development finance institutions in identifying potential areas for market interventions to help foster development of new asset classes and provide new ways to mobilize private finance for development.
Objectives
This publication launch event aimed to:
- present/disseminate findings of the study;
- discuss policy implications; and
- mobilize stakeholders and Development Finance Institutions to collaboratively address challenges facing the industry.
[1] Alternative asset classes” comprise the following asset categories reported by pension industry supervisory authorities: corporate green bonds, corporate infrastructure bonds, private equity/venture capital, real estate investment trusts, infrastructure funds and other vehicles, “alternative investments,” hedge funds/derivatives, exchange traded funds, “offshore alternative investments,” government-issued sukuk, and government-issued green bonds.