State Street is one of the world’s largest fund managers. Keppler Asset Management, a leader in analyzing market value, selects good value major markets. State Street then selects good value shares in these markets.
The State Street Global Advantage Funds are only available to non US investors, but all of us can gain insights by studying the portfolio breakdown of these funds. Non US investors can invest in the funds.
US investors can recreate the portfolio by buying the shares in the fund or Exchange Traded Funds in equal proportions to the fund.
The current breakdown of invested countries (December 2008) of the State Street Global Advantage Emerging Market Fund is:
Country – Percent of Portfolio
Top 10 Investments
Share – Percent of Portfolio
OAO Gazprom 4.9%
Anglo American 4.1%
OTP Bank 3.7%
MOL Hungarian Oil & Gas Plc 3.1%
AngloGold Ashanti Ltd 3.0%
Teva Pharmaceutcial Industries Ltd. 2.8%
PKD Bank Polski SA 2.6%
Magyar Telcome Plc 2.6%
Telekomunikacja Polska S.A. 2.5%
Samsung Elecxtronics Co. 2.5%
By comparing annual performance of the State Global Advantage Emerging Market Fund (EMHV) to the Morgan Stanley Capital Index Emerging Stock Index (MSCIEM) we can see how the good value approach consistently outperforms the global average…plus volatility has been lower.
State Global Advantage Emerging Market Fund Performance in Euro
Year 2003 2004 2005 2006 2007 YTD
EMHV 31.75% 27.96% 63.59% 13.37% 25.49% -48.96%
MSCIEM 29.63% 16.515 54.41% 18.23% 25.71% -50.12%
Unlike the major market review we saw yesterday, this value investment did not tend to drop more during bear markets. Value investing is long term investing. Value investing is the most dependable type of investing but not in the short term.
Here is some homework for tomorrow’s update. Review the performance of the major market portfolio shown yesterday with the emerging market portfolio today. We’ll examine significance tomorrow.
Please send your questions and comments to me at firstname.lastname@example.org
Be sure to put MC in the subject line so I can give you a priority reply.
Until next message may all your value be good.
Learn more about value investing at our courses in North Carolina, Cotacachi or on Ecuador’s coast this winter.
Take a hike with me in the warm Cotacachi winter’s sun.
Stroll the sunny Ecuador beach this winter.
Jan. 16-21 Ecuador Spanish Course
Jan. 22-23 Imbabura Real Estate Tour
Jan. 24-27 Coastal Real Estate Tour
Join us for great fresh Ecuador seafood!
Feb. 9-11 Beyond Logic
Feb. 13-15 International Business & Investing Made EZ
Feb. 16-17 Imbabura Real Estate Tour
See Ecuador’s incredible scenery.
March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Export Expedition
March 16-19 Coastal Real Estate Tour
Share some time with Ecuador’s friendly people.
Better still join us all year! See how to attend our 27 courses, tours, mingos and expeditions in 2009 FREE.