CDC Group: In the money

Last year, the CDC Group, the UK-government backed private equity emerging market fund of funds committed to investing 50% of new investments into sub-Saharan Africa and South Asia; and 70% into the poorer countries of the world (defined as countries with a Gross National Income per capital below US$1,750 in 2001). Investing in emerging markets of this type is tricky if not impossible but CDC has posted growth in both net profit and assets. According to the group’s 2006 annual report the fund’s net assets are £2bn, an increase of 23% on 2005. The fund posted total return figures after tax of £21%.