Excel Funds Management Inc.

Emerging Markets

10%-Plus returns: only on emerging market debt

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We have seen 10 percent returns from sovereign debt alone this year. This EM Debt asset class has outperformed any fixed income and equity class YTD !

So what seems to be the driver in this asset class ?

For one, emerging yield spreads over underlying U.S. Treasuries have tightened over 60 basis points since the start of the year, reflecting investors’ appetite for emerging markets exposure. Second, U.S. Treasuries.  Outright yields on the EMBIG are calculated as a spread over Treasuries which have risen since the start of the year. Third, the dollar has performed strongly versus other currencies. Another reason investors are buying into this Asset Class would be low Debt-GDP picture which most EM countries have.

Excel EM High Income is up YTD 11.8 percent and has outperformed the benchmark 2.47% YTD.

The Excel EM High Income is a 1st quartile fund and is managed by one of the world’s most reputable investment teams.

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Author: Excel Funds Management

We Are Leaders. Our Focus is Undivided. Excel Funds is Canada’s specialist in Emerging Market investment opportunities. We pioneered Emerging Market mutual fund design and distribution in Canada. Our focus is undivided – Emerging Markets is all we do. Our Mission Is To Offer Canadians True Global Access By offering Canadians access to rapid growth markets, Excel Funds provides truly global and diverse investment value. Our clients want consistent, responsible and intelligent solutions – we will never stop being challenged and deliver on client expectations. We Listen. We Are Determined To Deliver. Our clients want to understand better. Excel Funds is the only company dedicated to providing investors with actively managed, best-in-class Portfolio Managers based in regional markets. In order to deliver deeper understanding, we are not removed from unique cultural, political and economic experiences. We Initiate. We Create. Investors benefit from strong, sustainable growth. To create wealth for our clients we will: • Offer globally diverse opportunities to capture shifts in world economies • Not resist change and continually lead in Emerging Markets global growth • Engage world class institutional managers for retail investors We Are Passionate. We Will Never Stop Innovating. True leadership is enabling and seeks a positive outcome for all invested. We will not rest on past success, and continue to provide clients with: • Innovative fund structures • Canada’s largest & most comprehensive Emerging Markets products • The best institutional level Portfolio Managers • World class on-the-ground active managers • A singular focus on Emerging Markets, the driver of global growth

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