Nile Pan Africa Fund
Trend: African Growth
Investors have made tidy sums for decades by plunking their money down in Asia’s emerging markets. But now, there might be a geographical shift of opportunity — to Africa.
The continent of Africa is actually second to Asia in terms of both land area and population. It’s rich in resources like oil and platinum. And most importantly, its countries are seeing positive moves toward economic reform.
Among the handful of funds seeking to profit off Africa, one to consider is the Nile Pan Africa Fund (MUTF:NAFAX). Portfolio manager Larry Seruma analyzes all 53 nations in Africa to find undiscovered growth opportunities. The portfolio is about 25% weighted in financial services, but also has significant weightings in energy, industrials, consumer and materials stocks. Top holdings include tech firm Pinnacle Technology, as well as energy firms Africa Oil (PINK:AOIFF) and Afren (PINK:AFRNF).
NAFAX is pricey, though. A-class shares cost 2.5% in expenses plus a 5.75% load fee. C-class shares (NAFCX) have no load fee but charge a whopping 3.25% in expenses.
Nile Pan Africa also is a small fund, at just $16 million in assets, but NAFAX’s screaming 38% returns year-to-date in 2012 could help it attract more interest.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.