Africa Invest
How your investment works
 
 
 
 
 

Your investment into the Plan is split into two parts:

•Capital Protection – whereby part of your investment is placed with institutions with a credit rating of AA- or better. This part will be worth your total original investment when the Plan matures after seven years.
•Capital Growth – whereby part of your investment is placed in the Africa Invest Fund. This part provides all the returns above your total original investments when the Plan matures after seven years.

Your Capital Protection
The Plan aims to return your total original investment, irrespective of the performance of the investment into Africa. We place part of your initial investment with AA- or better credit rated institutions who commit to returning 100% of your original investment after seven years. This capital protection provides certainty to your Plan return.

Your Capital Growth
All our investments into Africa are made through the Africa Invest Fund. This is a Guernsey based investment fund, listed and traded on the Channel Islands Stock Exchange, and will be launched to coincide with the end of the offer period of the Plan, 18 April 2008. After allowing for the Capital Protection, the remainder of your initial investment will be invested in the Fund and the performance of the Fund over the seven year Plan term will be the growth of your investment. In addition, at the end of the Plan term, you will also continue to own shares in the Africa Invest Fund which you can either continue to hold or sell. The aim of the Fund is to secure a stockmarket listing for the underlying holdings of the Africa Invest Fund and this may offer an additional profit for your investment.

 

 

* The exact figure will depend on interest rates on 2 May 2008.

** See section, titled 'How will charges and expenses affect my investment?’

*** In addition to the return achieved by the Africa Invest Fund on the maturity of the Plan, you will also receive the shareholding in the Fund that has produced this return. You can either continue to hold these shares and continue to participate in any ongoing profits of the Fund, or alternatively, sell your holding for cash to enhance your overall return from the Plan. However, in the interests of investors the Africa Invest Fund reserves the right to seek a stockmarket listing within the Plan term and this could increase your Plan maturity value.