New Star Heart of Africa

Launched at the end of 2007, this fund is the only UK retail fund that offers the potential of sub-Saharan Africa excluding South Africa.  Debt is being reduced, regulatory standards are improving, privatisations are increasing investment options, and the region has huge commodity resources, much in demand.  The fund is up 10% in the relatively short period since launch, although much of the rest of global equity markets have been in turmoil, and the fund has had 25% in cash. 

Undoubtedly higher risk, with regular reminders from political upheaval, as in Kenya recently.  Yet these markets have very low correlations with each other and the rest of the world.  The key to further progress, which has potential for decades, is continuing investment in infrastructure with the windfalls from commodities. 

To achieve long-term capital growth. The fund will invest in the securities of companies, which in the opinion of the fund manager, exercise a predominant part of their economic activity in or derive a predominant part of their income from sub?Saharan Africa excluding South Africa.