In a recent article (found here) the Fidelity Viewpoints series provides a rationale for investors to consider Africa in their portfolio allocations. As noted in the article, there are a number of sectors in Africa that look compelling from both a growth and a diversification perspective. In addition, the article points out that the secular and economic trends in Africa should merit investors’ further consideration.
Although the opportunity for investing in Africa is becoming more widely understood, it is still relatively difficult to find a pure-play investment opportunity in the Continent. In fact, while a handful of funds many have exposure to Africa, we at Nile Capital Management believe that offering an actively managed, pan-Africa mutual fund makes us unique. As you can see in our most recent Fund Fact sheet Nile Capital is invested across Africa, and seeks opportunities throughout the Continent. This is in contrast to other funds where an allocation to African countries outside of South Africa, and at times Egypt, is still relatively rare. In reality, while Fidelity’s manager may speak favorably of the opportunities in Africa’s frontier, less than half of their fund’s exposure is in Africa, with the substantial majority of that Africa exposure allocated exclusively within South Africa.
Nile Capital is truly pan-African, investing in what we see as many of the greater opportunities in Africa’s frontier markets. We seek to invest in opportunities which capture the growth of the consumer class, the demand for infrastructure, and global interest in natural resources. We believe that Nile’s fund vehicle is well positioned to truly participate broadly in Africa’s growth. Nile Capital Management’s expertise and focus on the African continent provides investors access to the Continent’s potential for growth.
Nile Capital Management, the Advisor to the Nile Africa series of funds, is a New York-based asset management firm with in-depth investment expertise that covers the entire African continent, from Cairo to Cape Town. By focusing on Africa, the company seeks to identify and capitalize on the best investment opportunities in the continent and expand investors’ access to emerging/frontier markets. Additional information is available at www.nilefunds.com.