Nile Pan Africa Fund

Fund Overview

Since its inception on April 28th, 2010 through June 30th, 2011, the Nile Pan Africa Fund has gained +13.91% annualized. During the same time period, the MSCI Frontier Markets Index gained +4.11% and the S&P 500 Total Return Index advanced +11.42% annualized.

Investment Case for Africa

We believe the investment case for Africa will continue to be underpinned by three themes. First, Africa is rich in natural resources. The continent contains 13% of the global reserves for oil, 50% of proven gold reserves, 60% of cobalt and 90% of the platinum group reserves, to mention a few. Africa will continue to supply the world with basic raw materials as demanded by countries looking to industrialize. Second, Africa's rising consumption is driven by its demographics. The continent's young population will fuel more demand for goods and services, relative to developed countries that spend more on social security, health care and entitlements. Finally, valuations are attractive. Africa's markets are less followed, companies and households have low levels of debts, countries have better fiscal balances and the economies have low leverage. We believe investors can look at Africa as a way to deepen their emerging market allocations without increasing risk.

Africa Outlook

We are staying bullish on Africa as developed and emerging countries continue their quest for natural resources in Africa and as low interest rate environments lead developed markets investors to seek higher yielding assets in emerging and frontier markets.