Investment Strategy

Nile Africa, Frontier & Emerging Fund (previously the Nile Pan Africa Fund) seeks to provide long term capital appreciation by investing in stocks of African-based companies. The Nile Africa, Frontier & Emerging Fund (“the Fund”)is advised by Nile Capital Management, LLC, and its Portfolio Manager is Larry Seruma, Chief Investment Officer.

In normal markets, the Fund expects to invest at least 80% of its assets in stocks of public companies that have the majority of their assets in Africa, and/or derive a majority of their revenues from Africa. The Fund diversifies broadly among the most attractive regions and countries in Africa, identified through top-down macroeconomic analysis. This analysis evaluates and ranks each of Africa’s 53 nations on the basis of economic growth, inflation, interest rates, currency, regulatory framework and political ability.

The Portfolio Manager also employs bottom-up fundamental analysis to identify the most attractive companies in selected markets. This analysis draws upon proprietary research and “on-the-ground” contacts and resources in African markets. It will focus on such factors as:

  • • Cash flow return on investment
  • • Return on invested capital
  • • Sound balance sheets with reasonable debts
  • • Strong products with competitive advantages
  • • Strength and stability of company management
  • • Sound accounting policies and corporate governance
  • • Prospects for sustained earnings growth