The newest mutual fund that T. Rowe Price has launched, the T. Rowe Price Africa & Middle East Fund, has bet big on Africa, the Baltimore Sun reports. Fully half of the fund’s assets is invested in companies in that nation.
It’s an interesting investment strategy, given that while the rest of the world has grown richer, those in Africa have grown poorer due to war, disease, politics and a hostile Western trade policy.
T. Rowe Price Vice President Joseph Rohm compared the Africa & Middle East Fund to the company’s Emerging Europe & Mediterranean Fund. He points to improved political stability, faster growth, investments in infrastructure and strong commodity prices in both regions.
This is the second time a U.S. investment firm has launched a fund focused on Africa. In 1995, Calvert Group debuted the New Africa Fund, but shut it down shortly thereafter.
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