NGE - NGE: Nigerian Equities Still Look Risky

• NGE is an ETF that is denominated in U.S. dollars, and invests in 20 listed Nigerian equities.
• The fund provides U.S. investors with the unique ability to gain direct exposure to Nigeria.
• Since Nigeria is not the most obvious place to invest, it is worth evaluating whether or not the fund is undervalued.
• Unfortunately, we would expect to see a greater forward yield in NGE as compared to the current market price, while the Nigerian naira still appears risky to hold in light of high domestic inflation.
• With certain developed equity markets appearing undervalued, it makes little sense to invest in a far less developed equity market with no margin of safety.

For further details see: