Email of the day
Comment of the Day

March 27 2012

Commentary by Eoin Treacy

Email of the day

on African funds
“Thanks a lot for the excellent answer to my previous email regarding "investing" in the potential end of the government bond market bull it was much appreciated.

“I looked at the Standard Africa Fund mentioned in the last commentary - Here is a link for those interested -

“Although I like its allocation properties the entry criteria is high at $50,000 and it is not ISA'ble (if that's a word). After a fruitless search I have found nothing like it that has a similar allocation, lower entry criteria and is ISA'ble. Was wondering if you had such a question from others or had any pointers.

“Thanks in advance.”

Eoin Treacy's view Thank you for your kind words and this question which may be of interest to subscribers. I do not know of any additional UK listed funds that would be eligible for an ISA and that have an acceptably low entry hurdle. If subscribers can suggest any I would be happy to add them to the Chart Library.

The US listed Market Vectors Africa Index ETF has a low minimum investment and its largest weightings are: South Africa 25.43%, Egypt 19.96%, UK 17.47%, Nigeria 15.78% and Morocco 13%. However it would not be eligible for an ISA unless the FSA have been formally notified of the company's intention to sell it into the UK market. The Fund has been largely rangebound for more than two years. It rallied to break the yearlong downtrend in February and has paused near $30 for the last few weeks. Provided its continues to hold the majority of its gain this year, the benefit of the doubt can continue to be given to potential for higher to lateral ranging.

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