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FAQ's

Portfolio/Investment Policy

1.) Because the Johannesburg Stock Exchange (JSE) has a market capitalisation of 75% of the African continent will South Africa way heavily in the Intereffekt Emerging Africa portfolio?

No, South Africa will in principle not be incorporated into the portfolio. The correlation of the South African market with the global markets are relatively high, and we therefore believe that we can achieve higher returns from the other markets on the African continent due to historically lower correlations and higher growth expectations.

2.) Will Intereffekt Emerging Africa, just as Intereffekt Japan, China and India Warrants, invest in warrants on the African continent?

No, Intereffekt Emerging Africa only invests in equity shares. Therefore, unlike our warrant funds this fund is not leveraged.

3.) Does Intereffekt Emerging Africa also invest in shares which have a listing outside of the continent, but who have heavy business interest in Africa?

In principle we will only invest in shares which also have an effective listing with an exchange on the African continent. However, should there be highly attractive shares which are strongly allied to Africa, then we may consider investing in them. In terms of the total portfolio such investments will be very limited.

4.) What is the duration of the fund?

The fund is open-ended and will issue shares for an indefinite period of time. Therefore there is no talk of any fixed period of time.

 

Costs

1.) What are the administrative costs?

The management fee amounts to 2% per annum, in addition to a performance fee of 10% per annum (high watermark), subject to a profit threshold of 10% (this means that if the return achieved in a financial year exceeds 10%, a performance fee of 10% will be charged  on the amount over the high watermark). Total costs (excluding a possible performance fee) have been estimated to be 2.58%


Other Questions

1.) What is the minimum participation level for purchases of shares in the fund?

 The minimum participation is 1 share.

2.) How can I follow the performance of the fund?

It is possible to follow the performance of the fund trough internet (on the website http://www.intereffektfunds.nl/en/prices.html).

3.) Is the fund priced live just as the warrant funds?

No, the Emerging Africa Fund is an equity fund and therefore is priced once a day, on the basis of share buy/sell orders the previous day (Euronext Fund Service, see prospectus p. 40/41).