core sector communique

Nile Pan Africa Fund (NAFAX) 2011 Q3 Newsletter ____ Nile Capital Management is pleased to announce its 2011 third quarter performance update for the Nile Pan Africa Fund (Symbol: NAFAX), an actively managed mutual fund that focuses exclusively on the continent of Africa. Fund Overview In the third quarter of 2011, the Nile Pan Africa Fund fell -20.09%. During the same time period, the MSCI Emerging Markets Index fell -22.56%, the MSCI Frontier Markets Index fell -12.07%, the Dow Jones Africa 50 Titans Index fell -17.42% and the S&P 500 Total Return Index fell -13.87% Outlook The extreme volatility experienced over the last quarter has created significant investment opportunities for both short term and long term returns. We believe the long term investment case for Africa remains intact and that the recent market performance has created a good entry point for investors wishing to allocate to Africa. Presently, most developed market investors have a low exposure to emerging markets and will continue to pursue a more global allocation to gain access to higher yielding assets and growth markets in order to compensate for the low return opportunities at home. We believe managing risk is a key in achieving long term results; our investment process begins by assessing political risk and seeking markets where we see opportunity. We then seek the most compelling companies in which to invest.