Excel Funds Management Inc.

Emerging Markets

In Brazil: The Poor get Richer, Faster

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In North America, the rich are getting richer faster. In South America, Brazil, the poor are getting richer faster. In terms of income, Brazilian workers make up the lowest 10% of the labor force, and had higher salary increases than the remaining 90% of the labor force. Wages for Brazil’s poorest workers grew an impressive 29.2% between 2009 and 2011, and during the same period, the average income of the general labor grew 8.3%. That is a significant difference than U.S. raises. This is showing that even the poorest contribute to the growth of the country. The average monthly income of workers in Brazil show a gain of 4.6%. While the poor are getting richer in Brazil and the poor are getting poorer in the U.S, there is still no comparing poverty or middle class incomes in the two countries. Over the next several years, Brazil has a ways to go before there is more uniformity in the social class when comparing social services in the U.S. But if the U.S. stays the way it is with low wages and high education costs, we should be on par with Brazil in a couple of generations.

Excel’s Latin America Fund invests 60% of its country allocation in Brazil which, as we see in this article, has a significant growth potential. 21.1% of the portfolio is allocated to financial services. With the wage increases, people will be buying more, using the banks for savings, and purchasing homes. By staying or investing in this fund, you benefit by gaining investment exposure to one of the fastest growing regions in the world. With Brazils population being 199 million with the average age being 29.6, the work force is raising and won’t diminish any time soon. And even with the poorest contributing to the growth of the country, the economic development will be moving rapidly.

Written by Melissa W.



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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