Excel Funds Management Inc.

Emerging Markets

Excel Investment Council Update

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Currencies this past week:

Mexico rose 1.3% versus USD- stands 12.64

Turkey Lira rose .80% versus USD-Stands at 1.77

Brazil Real rose .70% versus the USD-Stands at 2.03

South African Rand fell .90% versus USD-Stands 8.67


Equity markets of note:

Russia up 2.9%

Mexico up 1.4%

Turkey up 1.0%

Worst performer Bovespa down 3.0%

Sensex was down .50%


Poland cut rates by 25 bp and signaled a possible pause in the cutting cycle. 4.25% now 4.00%

Euro area unemployment rose to an all-time high 11.8% ECP left rates unchanged as expected.

New USD sovereign supply came from Mexico and Turkey, were extremely well received despite weaknesses in US treasury markets.

This week Bank of Thailand and Bank of Indonesia kept policy rates unchanged. The banks mentioned external demand pickup and strong domestic activity.

Bank of Korea also kept rates unchanged. The current president will step down in February after five year term and will be replaced by a female president Park Guen-hye. Therefore, the Bank of Korea will wait until a new government is formed. Growth is expected to be around 3.3% in 2013.

Bank of Japan is talking about easing monetary policy again this month and taking it inflation target to 2%. It might be possible for BOJ to income its 1.2 trillion asset buying and lending program. The bank meets January 20-21st.

Russia inflation rose 6.6% YOY in December. This was up from 6.5% in November. The slightest increase was due to food prices.


This week expect Dec Indian inflation.

Monday: the last number was 7.2% and 7.4% is expected. Friday China GDP for Q4 released forecast 7.8%. Friday China Industrial Production rose 10.2 up from November 10.1%

Friday China Retail Sales 15.0% YOY up from 14.9% Wednesday Brazil will review the Selic rate 7.25% expect no change.

Wednesday, Thursday is the US bank earnings.

Wed, GS, JPM, BNY.

Thursday BAC, C


Record US sales for LATAM corporate bonds

Latin America companies have sold amount of bonds in the US this year as borrowers have sought to tap global investors’ appetite for higher yielding assets. This has pushed total sales to a record 68.4 billion, according to the figures from Dealogic.


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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