May 11, 2011

Nile Pan Africa Fund Assesses Its First Year Performance, Points to Low Correlation With Other Indices

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In its letter to investors, Nile Capital Management (NASDAQ:NAFAX) advisor to the Nile Pan Africa Fund, believed to currently be the only actively managed mutual fund that focuses exclusively on the continent of Africa, provided a review of the Fund's first year of performance and portfolio characteristics. The firm also drew attention to the launch of its investment blog Money Watch Africa, which provides commentary and analysis of the investment landscape and opportunities in Africa.

"We are pleased to report that the Nile Pan Africa Fund not only outperformed the MSCI Frontier Markets Index during its first year of operation, but also showed low monthly correlation to the index and what we believe is an attractive risk profile. We believe these characteristics make the fund a compelling investment tool for investors who are looking for deeper diversification of their global portfolios," said Larry Seruma, the fund's manager and chief investment officer of Nile Capital Management.

From its inception on April 28th, 2010 through April 30th, 2011, the Fund gained 22.07% annualized. During the same time period, the MSCI Frontier Markets Index gained 9.94%, the Dow Jones Africa 50 Titans Index increased 11.07% and the S&P 500 Total Return Index advanced 16.67% annualized.

The Fund also showed low monthly correlation to the S&P 500 (0.72) as well as the MSCI Frontier Markets Index (0.48). The Fund's annualized standard deviation (based on monthly returns) was 16.77% -- lower than the S&P 500 (18.09%) and MSCI Frontier Markets (17.21%), indicating a favorable risk profile for the Fund.

Nile Capital believes that the fund's first year results bolster the case for investing in Africa and the firm's active management approach to investing in the continent based on fundamental research on the ground.

"While growth in developing nations is slowing down, Africa's growth is projected to be in excess of 5% through 2015, yet it continues to be an under-researched and under-invested region. We believe our on-the-ground research adds value by uncovering attractive investment opportunities, while managing the risks," added Seruma.

About Nile Capital Management, LLC

Nile Capital Management, the Advisor to the Nile Africa series of funds, is a New York-based asset management firm with in-depth investment expertise that covers the entire African continent, from Cairo to Cape Town. By focusing on Africa, the company seeks to identify and capitalize on the best investment opportunities in the continent and expand investors' access to emerging/frontier markets. Additional information is available at

Nile Pan Africa Fund (NAFAX) Performance, April 2011
As of April 30, 2011. Inception Date is April 28, 2010.

Nile Pan Africa Mutual Fund

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. As stated in the current prospectus, the Fund's total annual operating expense ratio (gross) is 4.17% for Class A shares. The Fund's investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until July 31, 2011, to ensure that the Total Annual Fund Operating Expenses After Fee Waiver (exclusive of any acquired fund fees and expenses, borrowing costs, taxes and extraordinary expenses) will not exceed 2.50% for Class A subject to possible recoupment from the Fund in future years. Please review the Fund's prospectus for more detail on the expense waiver. Results shown reflect the waiver, without which the results could have been lower. A Fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month-end, please call toll-free 1-877-68-AFRICA.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Nile Pan Africa Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-877-68-AFRICA. The prospectus should be read carefully before investing. The Nile Pan Africa Fund is distributed by Northern Lights Distributors, LLC member FINRA. Nile Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC.

Mutual Funds involve risk, including possible loss of principal. Because the Fund will invest the majority of its assets in African companies, it is highly dependent on the state of the African economy and the financial prospects of specific African companies. Certain African markets are in only the earliest stages of development and may experience political and economic instability, capital market restrictions, unstable governments, weaker economies and less developed legal systems with fewer security holder rights. Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund's investments. ETF's are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. Non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations.

Dow Jones Africa Titans 50 Index: Measures the stock performance of 50 leading companies that are headquartered or generate the majority of their revenues in Africa. Stocks are selected to the index by float-adjusted market capitalization, subject to screens for size and liquidity.

Standard Deviation: Measures the degree of variation of monthly returns around the mean (average) return. The higher the volatility of the investment returns, the higher the standard deviation will be.

Correlation: Measures how closely the investment tracks an index.

The S&P 500 Index: An unmanaged composite of 500 large capitalization companies. The index is widely used by professional investors as a performance benchmark for large-cap stocks.

The MSCI Frontier Markets Index: A market-capitalization weighted index of 26 emerging market country indices.

You cannot invest directly in an index.

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