Excel Funds Management Inc.

Emerging Markets


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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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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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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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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