Excel Funds Management Inc.

Emerging Markets


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Mexico, Chile and Columbia maintained strong growth metrics

The Latin American growth gap, or the rate of growth differential between countries measured by GDP, may have peaked in 2012 according to HSBC analysts.

While Brazil and Argentina showed signs of deceleration, Mexico, Chile and Columbia maintained strong growth metrics.

HSBC says “In the case of Mexico, a virtuous cycle of initiatives by policymakers and investment decisions by firms appears to be emerging. In Brazil, we currently observe the opposite”.

Forecasts for GDP growth in the region come in at “4.8% for Chile, 6.2% for Peru and 4.3% for Colombia”.

Both the Excel Latin America Bond Fund and Excel Latin America (Equity) Fund are two great investment vehicles helping Canadian investors capture the tremendous economic performance opportunity of the Latin American region. With geographic diversification and leading portfolio managers managing an Excel fund we aim to provide investors with both value, strength and expertise.

Written by Jack S.

Read More:
http://www.emergingmarkets.org/Article/3138072/Economics-and-Policy/Latin-America-outlook-Brazil-may-rebound-this-year.html

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Article Review – Hunt is on for African currency bonds

In what is considered a relatively new but growing asset class, locally denominated fixed income originating from African nations is gaining interest with fixed income managers.

“Until October, for the past two years, we were not overly excited about sub-Saharan Africa. But now valuations have become very compelling,” said Didier Lambert, London-based executive director and lead portfolio manager for local currency emerging markets debt at J.P. Morgan Asset Management (JPM).

 

JPMAM managed $1.85 billion for institutional clients in local currency emerging markets bonds across all markets as of Sept. 30, up $1.1 billion from Dec. 31, according to data from eVestment Alliance LLC, Marietta, Ga.

As an indication of the general momentum in the space, the article cites Nigeria locally denominated fixed income which has seen its yields fall more than 400 bps since August of this year alone.

 

Written by Jack S.

 

Link: http://www.pionline.com/article/20121210/PRINTSUB/312109969/hunt-is-on-for-african-currency-bonds#


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After a year like 2012 Global EM Bonds are likely to become more pervasive and nuanced

After a year like 2012 Global EM Bonds are likely to become more pervasive and nuanced according to Baron’s writer Reshma Kapadia.

Citing Jan Dehn, co-head of research at emerging markets shop Ashmore Investments Management, Kapadia writes that “ the great unwind”

of developed economies may become a real problem as heavy debt loads and current account deficits start to gain significantly more traction with investors.

 In terms of strategy, Dahn points out the low correlation of EM/Global government fixed income and attributes continuing  trade as a macro rotation by investors such as himself. Dhan also goes on to point out that EM government  (locally denominated) fixed income insulates investors against weakness in the US Dollar.

Needless to say, we at Excel Funds still firmly believe in the growth of this asset class and offer investors the Excel High Income Fund.

The High Income Fund is a great vehicle that helps investors earn real yields in a low interest rate environment while on exposing portfolios to low-medium risks.

 Written by Jack S.

Read more:

http://blogs.barrons.com/emergingmarketsdaily/2012/11/26/asset-allocation-to-gain-importance-for-em-bond-investors-ashmore/?mod=google_news_blog

 

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.


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Emerging markets growth, convenience push mobile content and commerce

If you think mobile content and commerce are just buzzwords at the moment, or concepts you should look at for the future, think again. Nearly 90% of mobile users already engage in mobile content and commerce.

That’s up from 82% last year. That growth isn’t about to start slowing down either, especially as people in emerging markets get access to increasingly affordable, sophisticated mobile technology.

 

The biggest rises in mobile content and commerce are in growth markets, including India (85 to 90%) and South Africa (89 to 95%). In contrast mature markets such as the UK have remained static at 91% for 2011 and 2012.

 

The big drivers for this increase in mobile growth would be the median age of these nations, India has a median age of 25 and under and South Africa is 26 and under l. The growing middle class continues to drive growth in these regions and that is being reflected in company earnings.

 

Airtel is Indian based phone company in New Dheli  represents one of India’s largest telecom company. They have over 261 Million subscriptions worldwide and has seen continued growth of new subscriptions.

 

The continued growth in the telecom world will continue to experience faster growth and increase market share from these driving economies which will continue to see growth from these young populations demanding more sophisticated devices and competition with this sector.

 

The overall sentiment continues to grow and Emerging Markets are now vital for growth in one’s investment portfolio going forward the facts can no longer be ignored. Emerging markets represents over 80% of the world population, 34% of the worlds GDP and growing and 75% of the world lands mass.

 

Where would you want to be Invested?

 

Written by Sam A.

 

http://memeburn.com/2012/11/emerging-markets-growth-convenience-push-mobile-content-consumption-commerce/

 

 


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Merrill Lynch favors EM over developed countries

Merrill Lynch Chief Investment Strategist Michael Hartnell favors EM over developed countries. The EM have been outperforming even though commodities are weakening. Michael Hartwell and his team believe the reason behind the strength of EM is the consumption story rather than the dependence on commodities.  They are also bullish on EM bonds over developed countries.

Excel has 12 funds raging from country specific or a general EM fund. Now is the time to take advantage of EM markets as they continue to grow.

Written by Jeff K.

Barrons. (2012). BofA Merrill Lynch Strategist Favors Emerging over Developed Markets. Retrieved November 19, 2012, from http://blogs.barrons.com/emergingmarketsdaily/2012/11/16/bofa-merrill-lynch-strategist-favors-emerging-over-developed-markets/?mod=google_news_blog


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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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Article Response: Four reasons to invest in Emerging Market Bonds

In a  recent conference call with investors Luz Padilla, Portfolio Manager at DoubleLine Capital, explained the major impetus behind the 30% compression in spreads between Emerging Market bonds and their US Treasury counterparts.

Padilla attributes the significant tightening in spreads(and rally higher in the bonds) to 1) Growth prospects 2) Financial Responsibility and 3) Ratings Improvements.

When asked whether emerging market bonds have more room to move, Padilla cites increasing demand metrics and new supply coming online.

Written by Jack S.

Read more: (webpage) http://www.forbes.com/sites/marcprosser/2012/10/15/4-reasons-to-invest-in-emerging-market-bonds-from-doubleline-capital/