Excel Funds Management Inc.

Emerging Markets


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Why have Emerging Markets Equities responded favourably?

The Wall Street Journal’s Jake Lee discusses some of the reasons why Emerging Markets Equities have responded favourably, recently.

Jake mentions the recent spate of “easy money” policies out of the Federal Reserve Bank, in the US, a “dovish” ECB which recently cut rates by .25 bps and introduced its’ new bond buying program.

“If you had invested in Asian stocks you couldn’t have gone wrong” Mr Lee mention went to cite broader indices in Thailand which have risen as much as 28%.

 

The Excel Emerging Markets fund, recently recognized with the 2012 Lipper Awards for best EM equity Fund over 1 year, makes a compelling investment vehicle for investor portfolio exposures to the Emerging Markets. The fund offers broad diversification, strong and active portfolio management as well as a proven track record.

Written by Jack S.

Read More: {Video} http://live.wsj.com/video/what-driving-investors-back-to-emerging-markets/3AFE3436-A14E-46C7-A52E-88975D650FB7.html#!3AFE3436-A14E-46C7-A52E-88975D650FB7

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The central bank of China, injected 265 billion yuan ($41 billion Cdn) into the country’s money markets Tuesday in a stimulus measure aimed at keeping short-term interest rates low.

The central bank of China, injected 265 billion yuan ($41 billion Cdn) into the country’s money markets Tuesday in a stimulus measure aimed at keeping short-term interest rates low.

It was the second biggest debt purchase ever by the People’s Bank of China and came a week before the government comes out with its latest report on quarterly growth.

Economists expect it will show that growth has slowed for the seventh straight quarter.

But authorities are moving more cautiously than they did after the 2008 crisis, when the huge stimulus that helped China rebound also fueled inflation and a wasteful building boom.

China’s economic renaissance is now in its fourth decade. One of its striking features, in addition to its success, is its constant state of change. The types of goods produced, the degree of dependence on cheap labor, the relative openness of markets and currency, all have changed dramatically in the 33 years or so since Deng Xiaoping first began the reform movement. From most reports, it appears that more changes in the direction of economic openness are currently at hand. The current stimulus measure should provide some easing in keeping the short-term interest rates low.

Why does this progress take place? Could it be that the leaders of China have a vision of the future that entails a continuing opening of the economy? Could it be that the leaders of China have aspirations for the Chinese people that require that they become better off economically? Could it be that the leaders of China believe that China’s future will be built on education, creativity, personal discipline, and hard work? My guess is that the answer to all of those questions is “yes”.

With this week’s stimulus measure it is another sign that the Chinese are committed to have the economy grow at a faster pace than we have seen of recent times. China will no doubt the new top economic power in the world investors must wake up to this and be invested long-term and share in this success story.

Written by Sam A.

Source: China’s central bank boosts economy


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Jim O’Neill likes Chinese equities

Former Bank of America Economist, and now Director at G-SAM( Goldman Sachs Asset Management), Jim O’Neill likes Chinese equities.

In an interview with CNBC O’Neill said “At this moment, the Chinese market looks the most attractive to me. You don’t want to be with consensus; it’s quite easy to be on the wrong side of things”. O’Neill cites valuations and the Shanghai Index’s weak performance as a buying opportunity not seen in close to 3.5 years.

O’Neill goes on to recommend taking this opportunity to invest in all sectors that stand to benefit from a rising Chinese middle-class.

Excel’s China Fund, which invests in mainland Chinese equity markets and Hang Sang listed names, makes a compelling investment vehicle from a rising Chinese middle-class  and offers broad diversification, regional specificity and active/ experienced on the ground money management.

Written by Jack S.

Read More: webpage- http://www.moneycontrol.com/news/asian-markets/china-stocks-top-pick-among-brics-goldmans-oneill_763629.html


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China Asset Managers Report

Since ancient times, the Chinese have referred to their country as “Zhong Guo,” Mandarin for “Middle Kingdom.” Today, the meaning is quite appropriate, as turmoil in Europe and anemic growth forecasts for other developed markets leave many looking to China as the world’s central growth engine.

Yet, after a roaring start in the first decade of the millennia, the Chinese asset management industry has seen its growth stall, even as the local banking sector mostly avoided the issues that plagued developed markets during the financial crisis. While GDP growth has continued to grow at 8% in recent years, funds under management today remain some 30% below 2007 levels. At the same time, the number of funds has almost tripled, and no fewer than 71 fund management companies are competing fiercely for investors, many of whom prove quite fickle. Meanwhile, declining capital markets have reduced asset values, further straining the profitability of managed assets. Citi is proud to partner with Z-Ben Advisors, an independent consultant, in closely examining the unique features of the Chinese asset management landscape and its prospects in coming years. Based in Shanghai, Z-Ben is focused solely on producing research on China, and as such, is well placed to explore the finer points of the local market.

Key findings of Z-Ben’s research show that while China’s asset management industry has taken a brief pause in terms of mutual fund growth, other sectors have flowered. Assets in private funds have tripled in less than two years’ time; monthly launches of short-term-oriented bank wealth management products number in the thousands; and on the institutional side, sovereign and retirement funds are growing with breakneck speed. The future of asset management in China remains bright, Z-Ben notes, as the shift toward a financial industry more reminiscent of developed markets is under way. The pension and insurance sectors offer tremendous promise, given the need to rise to the challenge of providing for an aging population. Continued liberalization has increased the size and number of opportunities available to domestic and foreign players, as witnessed by the recent expansion of the Qualified Foreign Institutional Investor (QFII) program. The long-term prospects of China are almost universally extolled, even if challenges remain in the short run. As a major provider of services to the investment community, by sponsoring this research Citi hopes to provide industry participants with fresh insights, making a complex market easier to navigate.

Want to read more? Click here: China Asset Managers Report Citi Sept 2012