Money News
Fund management group New Star has unveiled the New Star Heart of Africa Fund. The launch of this sub-Saharan Africa excluding South Africa Open ended Investment Company (OEIC) reflects New Star's belief in the growing investment potential in the region. The New Star Heart of Africa Fund will be managed by AA Citywire rated Jamie Allsopp.
The fund will open for investment on 22 October 2007 with a minimum investment limit of £12,500 and will have a limited three-week fixed price offer period running to 9 November 2007. The OEIC is, says New Star, 'high risk'. That means it is only suitable for investors who are able to bear the loss of all or part of their capital investment.
Jamie Allsopp, manager of the New Star Heart of Africa Fund, says, "The investment landscape has changed significantly in Africa. Strong economic growth, high levels of foreign direct investment, increasing political stability and the resultant improvement in corporate governance have created a compelling investment backdrop and it is no surprise that some of the best performing markets in the world are situated in sub-Saharan Africa."
Traditionally, sub-Saharan Africa has been viewed by most portfolio investors as a region to avoid. Recent changes, however, have presented investors who are prepared to accept a higher degree of risk with some attractive investment opportunities.
The OEICwill charge a performance fee - 20% of any outperformance achieved over its target - three-month sterling LIBOR plus 3%. Initial charge is 5.25% and theres an annual management charge of 1.75%.
08 October 2007 © Moneyextra.com
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