An emerging markets specialist is eyeing up more investments in South Africa, despite its high corruption risk, because of its exposure to the continent's massive middle class.
London-based Somerset Capital Management has just been appointed as Tower Investments' new emerging markets manager, handling between $50 million and $200 million worth of investments.
Somerset, which has the royal family as a key client, is a boutique firm with $US2 billion of assets under management.
Its dividend growth portfolio is investing as much in South Africa as the four BRIC markets of Brazil, Russia, India and China.
Somerset partner and chief executive Dominic Johnson says the firm is spreading its investments across a range of markets with a growing middle class.
Mr Johnson says other markets to watch are south east Asia, Poland and Turkey.