Multi currency investors can study value oriented multi currency mutual funds to find goo value oriented shares.
Our last multi currecny update reviewed Michael Keppler’s emerging market valuations. This update showed that Hungary, Israel, Korea, Malaysia, Poland, Taiwan, Thailand and Turkey at equal weights offer the best value with minimal risk now.
The current multi currency update looks at the State Street Global Advantage Emerging Market Fund which invests primarily in good value shares in equity markets that Keppler has identified as good value markets.
This fund began December 1993 has over 1.5 billion dollars in assets and is registered in Luxembourg mainly for European investors (though almost any non American can invest).
This strategy attempts to outperform the Morgan Stanley Capital Index Emerging Markets Total Return Index (MSCI EM) with less risk of loss in the medium term (3 to 5 years).
This review shows how the State Street managers have diversified the assets almost exactly as Keppler ranks the markets. Their only deviation is a reduced weighting in Israel and Hungry.
The current country diversification is:
Cash 1.6 %
Other 8.3 %
Turkey 11.3 %
Thailand 13.5 %
Taiwan 13.7 %
Poland 13.2 %
Malaysia 12.1 %
Korea 12.8 %
Israel 6.9 %
Hungary 6.6 %
The performance of this fund shown below has been good long term, 7.77% per annum which is 62% higher than the 4.78 per annum rise of the MSCI EM Index.
These returns are heavily distorted downwards by the recent downfall. If you were to have viewed the emerging market and fund growth nine months ago they would be much higher.
We should expect more that 7.7% per annum long term growth from emerging markets.
See more on this at an article entitled Multi Currency Stock Selection Process
Learn how to see the entire multi currency update and a review of shares in MOL Hungarian Oil and Gas Plc.
Until next message may all your diversification be good.
Join us, stay at our farm and learn about intuitive investing for Susan Rotman’s business intuition course.
Walk with us in our new labyrinth at the farm.
Be cool in the hot summer as you learn.
Or join me with Jyske Global Asset Management to learn more about value investing.