TREND ANALYSIS ASSIGNMENT@MEMO on Africa - an investment frontier

Opportunities for Investment in Africa : A Letter-Proposal

NAME

University of Southern California

Prof . Hubbard

WRIT 340 : Advanced Writing

COVERING MEMO

TO : Barry Taylor

FROM : YOUR NAME

DATE : February 29 , 2008

SUBJECT : African Investment Proposal for Allstate

I am d to submit for your review and concurrence our first-stage proposal for Allstate to embark on an African investment program . Our thorough review of macroeconomic data , authoritative sources and analyst reports suggest that an Africa fund would go a long way toward redressing currently sluggish returns on client

's domestic investments

At the end of the day , I believe we have marshaled several strong points that ought to convince Mr . Liddy to take this investment direction seriously and , owing to our having done some early spadework , invite our participation in this investment venture

There is a trend toward pronounced FDI inflows into Africa that seems to have started in 2004 and accelerated rapidly in 2005-06 . This is an opportune time to position an Allstate investment fund before other investors catch on

The experience of Blue Financial and Emerging Capital Partners proves that returns can be very hefty indeed for canny investors

Allstate is in a position to create , manage and solicit investors for a fund such as the AIG African Infrastructure Fund . We have the funds to establish this ourselves and the credibility to attract wealthy investors

Our strategy can be two-pronged . We should examine placement options with the prominent Africa investment funds immediately to bolster return on assets this year while doing the groundwork for an investment vehicle of our own and setting up in Africa over the medium term

Meanwhile , a third investment team should immediately be tasked with trading in high-potential stocks in South Africa and the eighteen other countries that already have stock exchanges

The main targets for an Allstate investment fund should be food infrastructure , petroleum , communications , upstream and downstream industries related to agriculture , and minerals

Should you find this proposal compelling , I invite you to formalize the matter with Allstate . Otherwise , I stand ready to optimize this together with you

March 1 , 2008

Mr . Edward Liddy

Chief Executive Officer

Allstate Insurance Company

11860 Dublin Blvd

Dublin , CA 94568

Dear Mr . Liddy

Allow me to say , first of all , how gratified all of us are about your report that Allstate has already realized tangible gains from the Web-based sales system we initiated for you last year . It has always been our aim , as you know , to help Allstate achieve strategic goals and ultimately , contribute in meaningful ways to bottom line results

For some time now , we have examined a variety of programs and vehicles for optimizing gains from the 280 billion in investment funds Allstate deploys . Like you , we wish to extend the winning run typified by record-breaking shareholder returns in Fiscal 2006 . This initiative of ours gained even greater mortgages affected Allstate assets devoted to affordable housing loans and Economically Targeted Assets (Allstate , 2008 . What was invested at below-market rates to begin with looks to be...