Simplicity Afrika

The investors of the world have been attracted to the enormous potential in Africa - the second largest continent in the world in area. Simplicity was the first fund asset management company which launched a pure Africa Fund. The fund was launched in spring 2006.

Opportunities in Africa
Africa is a continent of unexploited natural resources, such as oil and metals. The costs for infrastructure projects needed to exploit these natural resources have been high, but as demand has increased, new investors have been attracted to this region. The Chinese have begun to invest and establish relations with many African countries. It is estimated that South Africa has most of the world's total reserves of the metals manganese, platinum, chromium and 40% of the world's gold. South Africa is also the most important country when it comes to production and sale of these and several other minerals, in the world market. The country has a well developed infrastructure, enhanced telecommunications, a well-functioning financial system and a rich retail.

About the Fund
There are 20 stock exchanges in Africa, where the stock exchange in South Africa (Johannesburg Stock Exchange) is by far the largest, measured in listed companies and market capitalization. Simplicity Afrika has its largest holding in South Africa. The fund has currently also holdings in Egypt, Kenya, Morocco, Mauritius, Nigeria and Tunisia and has also made investments on stock exchange in Canada, USA and Great Britain for shares in African companies. Simplicity's model also monitor shares listed in Tunisia and Mauritius and the fund may make investments here in the future. These countries currently have a well functioning trade and a sufficient number of listed companies included among the shares that the fund monitors. The investments are made, like Simplicity's other equity funds, strictly according to our proprietary SimplicityTM investment model, which selects the best performing shares on the basis of quantitative analysis.