New York, NY – March 12, 2014 – Nile Capital Management, LLC, has announced the launch of Nile Global Frontier Fund (NFRNX), an actively managed mutual fund of frontier growth companies. The Fund seeks to invest in the most attractive frontier markets of Central and Eastern Europe, the Middle East, Asia, Central and South America, and Africa.
The Fund’s investment objective is to provide long-term capital appreciation by investing in frontier market securities including equities, corporate debt instruments and sovereign bonds. Frontier economies are characterized by high rates of economic growth and the potential to develop into emerging markets over time. MSCI currently classifies 34 countries as frontier markets. Of the 30 countries in the world with the highest rates of GDP growth, 23 are frontier markets, according to the IMF.
Larry Seruma, Chief Investment Officer of Nile Capital Management, will manage the fund. He also manages Nile Pan Africa Fund (NAFAX), an actively managed mutual fund launched in 2010 to invest in opportunities in Africa. Mr. Seruma holds an MBA in Analytic Finance and Statistics from the Booth School of Business, The University of Chicago.
“Our success with African investments has proven the value of an actively managed fund focusing on frontier markets,” said Mr. Seruma. “In our new fund, we will use the same research disciplines that have worked in Africa to identify growth opportunities in what we believe to be the most attractive frontier markets, at attractive valuations.”
Nile Global Frontier Fund aims to hold a focused portfolio with an emphasis on long-term appreciation and low portfolio turnover. Three dominant themes – consumer growth, infrastructure development and natural resources – will drive the selection of frontier markets and companies. Nile will use proven research capabilities to evaluate frontier market macro-economic risks, and will emphasize economies in which policies have successfully managed inflation, current account balance, and fiscal policy.
Nile Global Frontier Fund is available at Charles Schwab, TD Ameritrade and other major brokerage platforms. The NFRNX is a no-load share class with a $2,000 minimum investment. Because frontier markets move in independent business cycles, apart from developed and emerging economies, they can potentially increase portfolio diversification. Many frontier markets are not well covered by analysts, creating opportunities to leverage research insights.
“Frontier markets present opportunities to identify high-growth businesses that are trading below intrinsic value,” says Mr. Seruma. “We believe a research-driven, actively managed approach can work well in frontier markets relative to passive indexing.”
About Nile Capital Management
Nile Capital Management is a Princeton-based asset management firm with in-depth expertise in frontier markets. Since 2010, Nile has served as investment adviser to Nile Pan Africa Fund, a pioneering fund focused on capturing Africa’s economic growth. Nile seeks to identify and capitalize on attractive investment opportunities in Africa and other frontier markets. Additional information is available at www.nilefunds.com.
There is no assurance that the fund’s investment objectives or strategies will be achieved or maintained.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Nile Funds. This and other important information about the Funds is contained in the prospectus, which can be obtained by calling 1-877-682-3742. The prospectus should be read carefully before investing. The Nile Funds are distributed by Northern Lights Distributors, LLC. Nile Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC.
Mutual Funds involve risk, including possible loss of principal. Frontier market countries generally have smaller economies and even less developed capital markets than traditional developing markets, and, as a result, the risks of investing in developing market countries are magnified in frontier market countries.
Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments. ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations. The Fund’s exposure to companies primarily engaged in the natural resource markets may subject the Fund to greater volatility than investments in a wider variety of industries.
There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. In general, the price of a fixed income security falls when interest rates rise. The Fund may invest, directly or indirectly, in “junk bonds.” Such securities are speculative investments that carry greater risks than higher quality debt securities.