Excel Funds Management Inc.

Emerging Markets


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TURN TO EMERGING MARKETS

It looks as though since the rally in domestic securities portfolio managers across the board are less bullish on domestic securities.

The fact of the matter is that Domestic evaluations are within line of expectations and emerging markets represent attractive evaluations on a forward

Basis. I have looked at the Hang Seng VS. TSX and have seen great value and upside in the Hang Seng.

 

Hang Seng

 

PE Ratio: 10.55

 

Forward Basis: 11.02

 

VS.

 

TSX

 

PE Ratio: 15.3

 

Forward Basis: 14.08

 

Canadian managers are most enthusiastic about emerging markets equities, with 62% holding a favorable outlook on the asset class

The evaluations on a forward basis for the Hang Seng in this example provides great value to investors with long term growth horizons.

Fundamentals of EM space is undeniable  with 75% of Global growth coming from EM Space and when by 2030 EM will represent close to

55% of global market cap, no surprise PM’s alike are bullish on this asset class.

 

As IA’s build portfolios they must keep in mind the opportunities and great evaluations to  have their clients situated for long term growth

Potential in economies that will soon be recognized as the largest in the world.

 

Written by Sam A.

http://www.advisor.ca/investments/market-insights/investment-managers-turn-to-emerging-markets-russell-91422

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Green BRICS

Investors are starting to realize that through the European debt crisis; most emerging market countries took the time to re-organize their economies, maximize efficiencies and are now better prepared for the next phase of growth. These measures have included greater debt-servicing measures, managing inflation rates and developing more sustainable resources for long term growth.

The emerging markets have immense numbers of urbanizing, educated and wealthy youth with ferocious appetites for goods and services. A massive manufacturing industry is not anything new when reading about China or India; however, reading about renewable and sustainable energy with international recognition is new to many BRIC investors.

Above and beyond the clear positive environmental effects, these initiatives speak to a maturing in BRIC country leaders. It speaks to leaders that realize with over 70% of the population of which 45% are under the age of 25, a short or even medium term plan is not enough. Most importantly it speaks volumes to investors across that the BRICs are continuously evolving to accommodate long term growth.

The emergence of the BRIC nations as global powerhouses is in full swing and their long term growth is being enhanced daily – where are you invested?

Written by Jeremie C.

Is Latin America and the Caribbean turning on to energy efficiency?

Renewable Energy – Top 5 Emerging Markets Industry Guide


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In Brazil: The Poor get Richer, Faster

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.

http://www.forbes.com/sites/kenrapoza/2012/09/25/in-brazil-the-poor-get-richer-faster/


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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


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Excel Latin America Bond Fund (TSX: ELA.UN) Announces Quarterly Distribution of $0.21923 per unit

TORONTO, September 19th, 2012 – Excel Funds Management Inc. (“Excel”) is pleased to announce the tax – advantaged distribution for the quarter ended September 30, 2012 of $0.21923 per unit for the Excel Latin America Bond Fund (the “Fund”).  The distributions will be payable on October 15, 2012 to unit holders of record on September 30th, 2012. The distribution for the quarter ended September 30, 2012 is higher than the targeted quarterly distribution of $0.19375 per unit (an annualized expected yield of 7.75%) as it has been pro-rated from the period June 19, 2012 (date of inception of the Fund) to September 30, 2012.

Since the Fund’s launch on June 19th, 2012, its units have consistently traded above both its Net Asset Value per unit (“NAV”) and its $10.00 issue price.

Excel is Canada’s only emerging markets focused mutual fund provider and the Excel Investment Council Inc. (the “Portfolio Manager”) is a multiple Lipper Fund Award winner. Pioneering emerging markets investing over 14 years ago, Excel has been partnering exclusively with best-in-class, on-the-ground portfolio managers that bring Canadian investors first hand insight and expertise in these flourishing economies. Excel proudly calls itself Your Authority in Emerging Markets.

BTG Pactual, the Fund’s sub-advisor, is one of Latin America’s leading independent asset managers and had over U.S. $45 billion in assets under management as at December 31, 2011. Standard and Poor’s has awarded them the 2011 and 2012 Best Fixed Income Fund Manager distinctions.

About Excel Latin America Bond Fund

The Fund’s investment objectives are to (i) provide quarterly tax-advantaged distributions consisting primarily of returns of capital; and (ii) preserve and provide the opportunity to increase the net asset value of the Fund, in each case, through exposure to an actively managed, diversified portfolio consisting primarily of U.S. dollar denominated fixed income securities issued by companies located in Latin America, with an initial focus on Brazil.  The Portfolio Manager intends to hedge substantially all of the value of the portfolio to the Canadian dollar.

Units of the Fund trade on the Toronto Stock Exchange under the symbol ELA.UN.

For further information, please contact your financial advisor, call our investor relations line at 1-888-813-9813 or visit our website at http://www.excelfunds.com.

Grant Patterson

Chief Compliance Officer

Excel Funds Management Inc.

905-817-2964

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to the future outlook of the Fund and anticipated distributions, events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States.