Imara Asset Management has discontinued two of its African funds, the Imara East Africa Fund and the Imara African Resources Fund.

Rajeev Sookur, Chief Administration Manager, Imara Asset Management told Africa Global Funds that the funds were closed due to “high expense ratio and lack of third party investors”.

The Imara African Resources Fund was investing in a spread of mining, agriculture, oil and gas counters whose assets and businesses are mainly or substantially located in Africa.

The Imara East Africa Fund was investing in listed securities on the established East African Stock Exchanges, which include Kenya, Tanzania, Rwanda, Uganda and Mauritius.

Looking at the performance figures, the Imara East Africa Fund has depreciated by 18.30% over the past year, whereas the Imara African Resources Fund has also shown a negative return (-17.10%).

“Some investors were paid back while others accepted to be switched free of charge to other Imara funds,” commented Sookur.

He added that if the situation improves, Imara will not re-open the discontinued funds.

Imara also manages the Imara Nigeria Fund, the Imara African Opportunities Fund and the Imara Zimbabwe Fund.

As of May 31, 2017 the funds returned 0.20%, 9.30% and 7.80% YTD respectively.

“We see value in Africa as a whole after a long period of underperformance,” said Sookur.

Nevertheless, the Nigeria Fund returned a negative 36.30% over a 1-year period.

Sookur said the firm is considering the closure of the Imara Nigeria Fund.

“This is being contemplated by the Board of the fund for the same reasons mentioned above [high expense ratio and lack of third party investors], but has been postponed until the US dollars repatriation process improves in Nigeria,” he said.