Africa's $29 billion asset management giant bets on the world's worst-performing stock market despite investor fears

One of Africa's largest asset managers is making a contrarian bet on Indonesia, snapping up equities in what has become the world's worst-performing stock market after a prolonged selloff sent investors rushing for the exits.

• African asset manager Ninety One is buying Indonesian stocks after a major selloff made valuations attractive.
• Indonesia’s stock market has fallen over 35% in U.S. dollar terms this year, making it the worst-performing globally.
• The downturn was accelerated by geopolitical risks and concerns raised by MSCI over investability, leading to foreign outflows.
• Ninety One’s contrarian move signals growing globalization among African investors seeking opportunities beyond their continent.

According to Bloomberg, Johannesburg-headquartered Ninety One, which manages approximately $29 billion in assets, has started buying Indonesian stocks after a sharp decline left valuations at levels the firm considers attractive.

Indonesia's benchmark Jakarta Composite Index has fallen more than 35% in U.S. dollar terms this year, making it the weakest-performing equity benchmark among the 92 stock indexes tracked by Bloomberg.

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The downturn accelerated during the recent Iran conflict as investors reduced exposure to riskier emerging markets.

However, the market's troubles began months earlier after MSCI Inc. warned in January that Indonesia could lose its emerging market status because of concerns over investability, including the limited supply of freely tradable shares in many listed companies.

The warning triggered sustained foreign investor outflows and weighed heavily on market sentiment.

Rather than following the crowd, Ninety One believes the selloff has created a buying opportunity, betting that the market's decline has become disconnected from the long-term outlook of many Indonesian companies, Bloomberg reported.

A rare example of African capital going global

The move highlights the growing international reach of African asset managers, which are increasingly deploying capital well beyond the continent in search of undervalued opportunities.

While global investors have largely retreated from Indonesia amid concerns over liquidity, governance and geopolitical uncertainty, Ninety One's investment reflects a classic contrarian strategy—buying assets when sentiment is overwhelmingly negative in anticipation of a future recovery.

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Indonesia remains Southeast Asia's largest economy, with a population of more than 280 million people and abundant reserves of critical minerals such as nickel, making it a key player in global electric vehicle supply chains despite its recent market struggles.

For African investors, the decision also highlights how large institutional fund managers are broadening their geographic exposure as they seek returns across emerging markets rather than concentrating solely on domestic or regional assets.

Whether the gamble pays off will depend on Indonesia's ability to restore investor confidence and address the concerns raised by MSCI.

If the country's market stabilises and foreign capital returns, Ninety One could benefit from buying into one of the cheapest major equity markets at a time when many global investors remain on the sidelines.