The continent's economic growth and the absence of subprime mortgage exposure is the reason why African financial and banking shares are some of the top picks for Standard Bank's Africa Equity Fund.

The Africa Equity Fund invests in pan-African stocks, excluding South Africa, and currently holds around US$125-million in assets.

According to John Mackie, fund manager, Nigeria's Access Bank, Guaranty Trust Bank and First City Monument Bank all hold good value. Most financial institutions in Nigeria are operating from very low bases and are showing considerable growth.

Commodity stocks, such as Equinox Minerals and Albidon, are also popular with the fund because of China's increasing demand for raw materials.

Mackie added that developing economies are less affected by current fears of an American recession.