Nile Pan Africa Fund (NAFAX) Third Quarter 2012 Performance Update

PRINCETON, N.J.--()--Nile Capital Management is pleased to announce the third quarter 2012 performance update for its Nile Pan Africa Fund (NAFAX), an actively managed mutual fund that focuses exclusively on the continent of Africa.

Fund Overview

During the third quarter of 2012, the Nile Pan Africa Fund gained 15.13%. During the same time period, the MSCI Frontier Markets Index advanced 7.37%. Since its inception on April 28, 2010, the Nile Pan Africa Fund has returned +12.03%, while the MSCI Frontier Markets Index returned -1.88%.

The Fund’s performance in the third quarter was due, in a significant part, to the performance seen in our Nigerian holdings. Our holdings in the energy sector also performed well as oil prices recovered substantially in the third quarter, due to reasons including Europe’s continued announcements of efforts at staving off disaster, as well as various effects from the sanction of Iran.

Outlook

Going forward, we expect the underlying factors contributing to Africa’s growth to persist, and will continue emphasizing our focus on three key investment themes: the growth of the African consumer, the development and investment in natural resources and infrastructure. Over time, regardless of short term weakness or strength we believe that the economic and political developments in many of Africa’s nations will continue to drive interest in many of Africa’s markets. In addition, we believe that Africa is a compelling investment opportunity from a valuation standpoint. In particular, we believe that many of the frontier markets of sub-Saharan Africa have yet to be understood by the greater part of the investment community, thus prices on the frontier remain attractive. However, as interest in Africa continues to grow, the early investors may be rewarded by the rerating of frontier markets.

Larry Seruma
Portfolio Manager
Nile Pan Africa Fund

To learn more about investing in Africa, please visit http://nilecapital.com.

For additional performance information, please visit http://www.nilefunds.com/Performance.html.

 

Nile Pan Africa Fund (NAFAX) Performance, Third Quarter 2012

 

As of September 30, 2012. Inception Date is April 28, 2010.

Fund Name         2012 Q3         1 Year         Since Inception

Nile Pan Africa Fund

(NAFAX) Without Load

        15.13%        

41.47%

        12.03%

Nile Pan Africa Fund

(NAFAX) With Load

        8.54%         33.31%         9.33%

MSCI Frontier Markets

Index

        7.37%         3.59%         -1.88%
 

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 3.75% for Class A 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, 2013, 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 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.

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 Frontier Markets Index: A market-capitalization weighted index of frontier market country indices.

You cannot invest directly in an index.

1494-NLD-10/3/2012

Contacts

Nile Capital Management, LLC
Kurt Kammerer, 646-367-2820
or
Investors:
877-68-AFRICA

Release Summary

Nile Capital Management announces the third quarter 2012 performance update for its Nile Pan Africa Fund (NAFAX), an actively managed mutual fund that focuses exclusively on the continent of Africa.

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Contacts

Nile Capital Management, LLC
Kurt Kammerer, 646-367-2820
or
Investors:
877-68-AFRICA