Excel Funds Management Inc.

Emerging Markets


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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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Russia’s 2014 Olympic games set to become the most expensive winter Olympics to date

Russia’s Sochi is getting ready for the 2014 Olympic games. There is a budget of $18 billion dollars set aside and is set to become the most expensive winter Olympics to date. Everything is being built from scratch for the games. This includes the event sites as well as mountain resorts and hotels for all participants of the games. Roads are also being improved and new ones being built. The new construction is also incorporating green technology where it did not exist before.  In some way Russia is copying what China did for the 2008 Summer Olympics. They are presenting a new Russia for the rest of the world to see. Mr. Chernyshenko, President and CEO of Sochi 2014 said “every Olympics should surpass the one before” and it looks like Russia is well on its way.

As new construction continues it is a great opportunity for investors to consider investing in this region. The Excel Emerging Europe fund provides investors with the ability to invest in Russia directly .

Written by Jeff K.

Wake, B. (2012, November 10). Russia goes all out to build Olympic city Sochi: Most Expensive games in History. The Vancouver Sun. Retrieved November 12, 2012 from http://www.vancouversun.com/sports/Russia+goes+build+Olympic+city+Sochi/7530501/story.html#ixzz2C1Ussptt

“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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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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Emerging Markets drive Coca-Cola Profits

The Coca-Cola Co. says its net income rose 3 per cent in the third quarter, as the world’s biggest beverage maker expanded in in emerging markets and sold more of its sports drinks and teas at home.

The Atlanta-based company, which makes Sprite, Fanta, Minute Maid and Dasani water, says global sales volume rose 4 per cent during the period. But the growth was more pronounced in emerging markets, where Coca-Cola has been looking to capitalize on the growing ranks of middle-class consumers.

In its flagship North American market, the company said sales volume rose by 2 per cent. The increase was driven by what Coke refers to as “still beverages,” such as Powerade, Gold Peak and Fuze teas. Its sparkling beverage unit, which includes its namesake soft drink, was flat from a year ago.

In India, by contrast, the company saw a 34 per cent increase for its Coca-Cola brand and a 15 per cent increase for Sprite. Overall sales volume in India was up 15 per cent during the period.

This is a message that we must communicate to our clients, this just goes to prove on how large multinationals continue to seek growth outside of the traditional markets. This growth that we continue to see and growing middle class goes to show the importance of having exposure to these markets are so important. The Excel Blue Chip Fund is great for investors seeking exposure to these markets, but having the comfort of staying at home with their investments.

Written by Sam A.

Source: Emerging markets drive Coca-Cola profits


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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/


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There has been an increase in total volumes for Latin American bond

Recently, there has been an increase in total volumes for Latin American bonds. Brazil is the largest issuer in terms of deals and volumes with 45%. Mexico is also considered very strong with an improving economy which is leading to higher demand for its bonds. Mexico has been decreasing the amount of sovereign bonds as funding needs have diminished. In a low interest rate environment and higher coupon rates for emerging market debt, these factors are contributing to the higher demand for Latin American bonds. It is extremely difficult to find high yield bonds in developed countries leading investors to explore other avenues. Excel released an IPO of the “Latin American Bond Fund” on June 19th 2012. Since its debut on the TSX it has been trading above its original price of $10. As of Oct 12, 2012 it’s trading at $11.48. The ticker symbol is ELA.UN and is a great way to earn higher yield with quarterly distributions. Clients are looking for new opportunities from investments to earn income and grow their portfolios. This product is also a great way to help clients diversify their portfolios.

Written by Jeff K.

Dwyer, R. (2012, October). Euromoney. Latin American Issuers attract record crowds. Retrieved October 15, 2012, from  http://www.euromoney.com/Article/3098999/CurrentIssue/86809/DCM-Latin-American-issuers-attract-record-crowds.html

 


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Itau Buys $5.17 Billion Redecard Shares in Tender Offer

Itau Unibanco Holding SA (ITUB4), Latin America’s biggest bank by market value, purchased 299 million shares of Redecard SA for 10.5 billion reais ($5.17 billion) as it completed its plan to take the credit-card processor private.

Redecard will be de-listed from the Bovespa and Itau “will absorb Redecard, and that will create synergies and they will be able to cut costs,” said Pedro Galdi, chief strategist at brokerage SLW Corretora in Sao Paulo. “It was a long process, like a soap opera, but now Itau has reached its goal.”

With a pre-existing 50% stake in Redecard , Itau Unibanco decide to consolidate their payment processing systems in the face of stronger central bank deregulation of the space in Brazil.

Redecard was created as a spinoff of Credicard in 1996 by Citigroup Inc., Banco Itau Holding Financeira SA and Uniao de Bancos Brasileiros SA, known as Unibanco, to process credit-card payments and merchant-acquiring businesses, according to its website. Barueri, Brazil-based Redecard raised 4.07 billion reais in an initial public offering in July 2007.

Itau Unibanco, is the sub-advisor on the Excel Latin America Fund. The fund’s mandate is to seek long-term growth by investing in equity securities of publicly traded Latin American companies. As of Sept 1, 2012 the fund has retunred 1.8% and 8.8% since inception.

Written by Jack S.

 

Source: Itau Buys $5.17
Billion Redecard Shares in Tender Offer