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2010 06 Nile Pan Africa Fund Fact Sheet
 

2010 06 Nile Pan Africa Fund Fact Sheet

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    2010 06 Nile Pan Africa Fund Fact Sheet 2010 06 Nile Pan Africa Fund Fact Sheet Document Transcript

    • NILE PAN AFRICA FUND An Opportunity to Participate in the World's Next Potential "BRIC Equivalent" June 30, 2010 For the past two decades, investors around the world have been riveted on the emerging markets of the four high growth BRICs – Brazil, Russia, India and China. However, as INVESTMENT OBJECTIVE these opportunities fade, other high-growth emerging and frontier markets should Long term capital appreciation become attractive and worthy of consideration to be added to an investor’s asset allocation strategy. Several of these markets are located in Africa, the world’s second largest continent by population and land mass, behind only Asia in both measures. With a population of more than one billion spread among 53 nations and almost 12 million square miles, Africa is becoming too big for investors to ignore. Yet, its financial markets and expanding public companies remain shrouded in mystery for most foreigners. Quick points to consider: ● A ground floor opportunity with potential for high returns - Already we have PORTFOLIO MANAGER seen the first wave of strong returns from Africa. The continent’s economic growth Larry Seruma, Chief Investment is just forming what we believe is a powerful upward curve that will continue for Officer of Nile Capital Management decades and may produce results as rewarding as the BRICs over time. M.B.A. Analytic Finance and Statistics, Growth of $1,000 Invested in Leading Benchmarks Including African Markets Booth School of Business, The University of Chicago 6,000 5,000 4,000 Africa Composite South Africa 3,000 MSCI Emerging Markets MSCI World S&P 500 2,000 1,000 0 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Africa Composite data is composed of equal-weighted monthly returns from South Africa, Nigeria, Kenya, Mauritius, Ghana, Egypt, Morocco, and Botswana. The MSCI World Index is a market capitalization weighted index of 24 developed market country indices. The MSCI Emerging Markets Index is a market-capitalization weighted index of 21 emerging market country indices. The S&P 500 Index is a market-capitalization weighted index of 500 large cap US companies. You cannot invest directly in an index. 152 West 57th Street, 32nd Floor, New York City, NY, 10019 1-877-68-AFRICA www.nilefunds.com
    • NILE PAN AFRICA FUND Annualized Returns 1 Year 3 Year 5 Year 10 Year June 30, 2010 S&P 500 23.45% -7.70% -1.65% -2.72% MSCI World 26.98% -7.65% -0.01% -1.94% MSCI Emerging Markets 74.50% 2.73% 12.79% 7.29% REASONS TO INVEST Diversification South Africa 28.63% 3.55% 16.93% 12.68% Africa offers the opportunity to Africa Composite -4.32% -0.72% 9.71% 13.83% diversify a portfolio because its correlations have been fairly low with developed equity markets ● Political risks have been exaggerated - The stereotype of an African country ruled by one-party or military dictators is outdated and exaggerated. More than 90% of African nations now have functioning democracies. ● Strong economic and market growth - Nine of the 15 countries with the highest 5 Increase Emerging Market year growth rate are in Africa and the continent is urbanizing at a faster rate than Allocation India and is already as nearly urbanized as China. The fund offers an opportunity to actively overweight an emerging ● Increased global demand for commodities - Africa holds an estimated 30% of the market allocation. The fund enables world’s mineral reserves. A supply that simply cannot be ignored. As BRIC investors to make a larger allocation to countries industrialize, their demand for natural resources will keep increasing and Africa within the total emerging they are turning to Africa as a source of scarce natural resources - especially energy markets asset class and industrial metals. If you believe in the commodity growth story over the next five (5) years, Africa will be a prime beneficiary of that growth. ● Low correlation to domestic, international and Emerging Markets - Africa has correlations of 0.59 to S&P, 0.66 to MSCI EAFE, and 0.60 to MSCI Emerging Growth Markets. This fact can have dramatic effects within a well positioned portfolio. The fund offers investors an opportunity to participate in Africa’s ● The China Factor- China has increased its trade with Africa from $10 billion to $90 growth potential: commodity, billion over the past decade. China is committed to investing its growing reserves infrastructure and consumer growth into real assets around the globe and specifically commodities to secure its future economic growth. Africa has the mineral reserves and should benefit. Correlation measures how closely the investment tracks an index. Africa Composite data is composed of equal-weighted monthly returns from South Africa, Nigeria, Kenya, Mauritius, Ghana, Egypt, Morocco, and Botswana. The MSCI World Index is a market capitalization weighted index of 24 developed market country indices. The MSCI EAFE Index is a market capitalization weighted index of 21 developed market country indices. The MSCI Emerging Markets Index is a market-capitalization weighted index of 21 emerging market country indices. The S&P 500 Index is a market-capitalization weighted index of 500 large cap US companies. You cannot invest directly in an index. 152 West 57th Street, 32nd Floor, New York City, NY, 10019 1-877-68-AFRICA www.nilefunds.com
    • NILE PAN AFRICA FUND ● Steadily increasing capital flows- Capital flows to Africa now exceed June 30, 2010 those of three (3) of the four (4) BRIC countries. FUND FACTS 120 100 $ USD (Billions) Total Annual Fund Operating 80 Expenses After Fee Waiver: 60 Class A: 2.70% 40 Class C: 3.45% Class I: 2.45% 20 0 Africa India Brazil Russia China Ticker Codes / CUSIP Numbers: Class A: NAFAX / 654124106 2004 2005 2006 2007 2008 Class C: NAFCX / 654124205 Class I: NAFIX / 654124304 Investment Strategy FUND AVAILABILITY: The Nile Pan Africa Fund is available Nile Pan Africa Fund (“the Fund”) seeks to provide long term capital appreciation by on Schwab, Fidelity, Scottrade, investing in stocks of African-based companies. The Fund is advised by Nile Capital E*TRADE and Pershing platforms. 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 PERFORMANCE: public companies that have the majority of their assets in Africa, and/or derive a June 2010: -2.19% majority of their revenues from Africa. The Fund diversifies broadly among the most Year to Date: -1.80% attractive regions and countries in Africa, identified through top-down macroeconomic Since Inception: -1.80% 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. Fund Inception Date is 4/28/2010. Returns are for the A Share Class (NAFAX) only, other share classes will vary. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. As stated in the current prospectus, the Fund's total annual operating expense ratio (gross) is 4.17% for Class A, 4.92% for Class C and 3.92% for Institutional Class shares. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until July 31, 2011, to ensure that the Total Annual Fund Operating Expenses After Fee Waiver (exclusive of any acquired fund fees and expenses, borrowing costs, taxes and extraordinary expenses) will not exceed 2.50% for Class A, 3.25% for Class C and 2.25% for Institutional Class shares, subject to possible recoupment from the Fund in future years. Please review the Fund’s prospectus for more detail on the expense waiver. Results shown reflect the waiver, without which the results could have been lower. A Fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month-end, please call toll-free 1-877-68-AFRICA. 152 West 57th Street, 32nd Floor, New York City, NY, 10019 1-877-68-AFRICA www.nilefunds.com
    • NILE PAN AFRICA FUND June 30, 2010 Why Nile Capital? ● We focus on what we know – We seek investment opportunities in regions and FUND FACTS industries where we have experience, unique information and a competitive edge. We know Africa and how to capitalize on it! ● We believe in Africa’s potential – We understand the dynamics that will transform Africa and help to grow its national economies into the 21st century. Africa is positioned very similarly to the opportunities that existed in India and China decades ago. ● We know that active management, research and selectivity are key – We trust FUND AVAILABILITY: our own work and not research performed by others. We have a physical The Nile Pan Africa Fund is available presence in Africa and employ an analyst based in Cape Town, South Africa. In on Schwab, Fidelity, Scottrade , addition, our portfolio manager visits Africa regularly and coordinates visits with E*TRADE and Pershing platforms. our analyst to get a 360 degree view of the continent, its economies and leading public companies. That’s a competitive edge. ● Experience and integrity are essential – We have created a vast network of contacts in Africa that we use to our advantage. That comes with experience. We have a strong track record in the investment management business with a demonstrated high degree of integrity. Our principals invest in our strategy right along with investors and treat their capital with the same prudence as our own. That’s dedication and belief. Manager's Perspective The investment case for Africa remains intact despite the recent market turmoil in For more information, please contact developed markets and its potential contagion to the rest of the global markets. An your advisor or visit investment in Africa still offers the potential to: (1) add return to your portfolio while www.nilefunds.com. lowering your overall risk, (2) diversify your investment, (3) deepen or actively manage your allocation to emerging markets. Africa markets in the first quarter of 2010 performed better than developed markets, for example the 14 largest African markets were up an average of 9.26% compared to 2.71% for the MSCI World index. Africa’s historical low correlation with other emerging and developed markets appears to continue today. Investors should carefully consider the investment objectives, risks, charges and expenses of the Nile Pan Africa Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-877-68-AFRICA. The prospectus should be read carefully before investing. The Nile Pan Africa Fund is distributed by Northern Lights Distributors, LLC member FINRA. Nile Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. Mutual Funds involve risk, including possible loss of principal. Because the Fund will invest the majority of its assets in African companies, it is highly dependent on the state of the African economy and the financial prospects of specific African companies. Certain African markets are in only the earliest stages of development and may experience political and economic instability, capital market restrictions, unstable governments, weaker economies and less developed legal systems with fewer security holder rights. 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 MSCI World Index is a market capitalization weighted index of 24 developed market country indices. You cannot invest directly in an index. 1116-NLD-8/3/2010 152 West 57th Street, 32nd Floor, New York City, NY, 10019 1-877-68-AFRICA www.nilefunds.com