How to get the most bang for your buck: How to use AFRICOM’s ‘auto-investment’ fund
How to invest in AFRicOM’s “auto-funds,” as it is known, is a big deal.
In the United States, the United Kingdom, Australia, New Zealand, and Canada, AFRC has been used by the US to finance the deployment of US forces in the Middle East and Afghanistan since 2014.
This strategy was supposed to help create the US military as an economic engine of the region, but since then, its “auto investment” strategy has morphed into an investment platform for those in power.
For example, in October 2018, the Trump administration announced a new $1.6 billion investment in ABRICOM, including $1 billion from the Defense Department, which is expected to be the largest US military contribution to the project.
But even with the Pentagon’s largesse, ABRC’s auto-investments are far from perfect.
First, the US government’s auto investment program has been criticized for its lack of transparency, and its reliance on “market incentives” for fund managers to do well.
Second, despite promises from President Trump, there is no guarantee that these investments will be successful, because there is little oversight from Congress and a lack of any accountability for the investments themselves.
Finally, the American auto-fund fund is far from a new concept in the United State, and there are several others already in place, including one that focuses on auto investment by American corporations.
So what is the auto-finance fund?
The AFRCI Fund aims to be a US-led vehicle for US companies to invest at low cost in a number of emerging and emerging-market markets.
It’s based on the concept of a “globalized investment company,” and it’s aimed at companies with “high levels of debt” who are looking to “invest in emerging markets” and to build “greenhouses of capital” for future US companies.
The fund’s fund manager, ABI Group, is an investment company with $2.4 billion in assets, and it manages more than $500 billion of funds globally.
Among its investments are $250 million from Goldman Sachs, $50 million from JP Morgan Chase, and $50 billion from UBS.
While it’s unclear how much money the fund manages, its most recent investment in November 2018, when the Trump Administration announced it would send an additional $1 million to AFRICO, was a total of $400 million, making it the largest auto-reinvestment fund in history.
That’s a lot of money.
As for the value of the investments, analysts are divided on the AFRCM’s performance.
There are a number who believe the fund’s investments are a net negative for the US economy, while others have argued that they can generate a large amount of income for the government, given the government’s need for financial stimulus.
To help understand how the auto fund’s “automotive finance” strategy could work for the United States economy, I called up Mark G. Smith, a managing director at ABI, to discuss the fund and its potential impact on the US dollar.
You’ve been on the air for awhile now, but I want to ask you a couple of questions.
How is the AFI fund designed to work for US corporations?
How do you plan to address concerns from US companies that this could be a bad thing?
What are the criteria used to select investments for the fund?
Is it based on a company’s size, the size of its market, or some combination of both?
When you look at AFRICA, what do you see as its strengths and weaknesses?
It is an extremely aggressive investment program, but how do you get to that?
Do you need to make some sort of commitment from AFRICAN to do the investments?
In what ways does the auto investment fund differ from other US-focused auto funds, and why is that?
What is the overall objective of the auto finance program, and how do its investments affect the US-dollar?
If AFRACOM has to be sold, how would that be done?
Is it an alternative investment vehicle for the AUS Treasury or would that require a different approach?
You know, this is all very good, but if you’re asking me, I don’t think it’s really a good idea.
How much money do you expect to be invested?
So far, the ABRCI Fund has raised $1,250 million, and the US Treasury has invested about $100 million, so this is a relatively small number compared to the AAFI and AFRB funds.
Is this a good investment for the dollar?
Well, there’s certainly a lot that’s positive to take from this, but