Excel Funds Management Inc.

Emerging Markets


Leave a comment

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.

Advertisements


Leave a comment

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


Leave a comment

Latvia Gets a Double Dose of Good News

Latvia received a double-dose of good news last week in that the country reported a strong gain in third-quarter output and had its credit rating raised by one notch at S&P.

“To their huge credit they buckled under, took the pain and austerity and pushed forward with structural reforms, and are now growing” an S&P spokesperson was quoted as saying.

The strong economic performance out of Latvia, a Baltic state neighboring Russia, was on the back of a deficit reduction plan estimated at 1.6% in 2012.

While the credit default market’s reaction was relatively muted and only moved default swaps down 2 bps, the upgrade in the Latvia’s credit rating will almost certainly help lower borrowing costs for the country’s government issued fixed income and sovereign debt.

Both the Excel EM High Income Fund and the Excel Emerging Europe Fund invest in this region of the world. And with exposures to both fixed income and equity markets, and boasting “on the ground” professional managers, Excel Funds provides the Canadian investor with opportunities to profit in uniquely compelling markets that for the most part remain untapped outside of only the institutional investor.

Written by Jack S.

Halas, Sedder. Latvia Gets a Double Dose of Good News – Emerging Europe Real Time, Wall Street Journal.

 

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.


Leave a comment

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


Leave a comment

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/


Leave a comment

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


Leave a comment

Institutions are increasingly searching for alternative yields…

Melanie Trimbell, of the Financial Standard, recently wrote Fund Managers are bullish on Bonds due to the recent announcement of QE3 and the ECB’s concerted bond buying program.

In an interview with Trimbell, Geoff Pidgeon head of asset management for HSBC in Australia said “ institutions are increasingly searching for alternative yields”.

The article does a good job of explaining the dynamics of the fixed income market in terms of local denominated fixed income and hard currency, or USD denominated, fixed income. Historically emerging markets offered higher yields but were not considered safe havens. However recent noticeable momentum in spreads and fundamental resilience in Asia’s corporate fixed income space has led to Asia fixed income having increased appeal.

The Excel Income Funds have done a great job for investors in participating in yield enhanced geographic areas ,such as Asian Fixed Income, as well as other regions that Sergei Strigo identifies as having momentum.

Written by Jack S.

Read more [webpage]: http://www.financialstandard.com.au/news/view/23140897