Excel Funds | The Story of Emerging Markets

Uploaded by excelfundscom on 27.01.2011

>>Voiceover: The world is rapidly changing
and investors need to change with it.
Nowhere is this more evident than in emerging markets.
What used to be considered suitable only for the very risk tolerant
is now becoming an important addition to any investor’s portfolio.
The world has changed completely over the last two decades.
Ten, twenty years ago, emerging markets were weak and poor.
Today, the reverse is true.
If you go visit those emerging markets,
you can see that the middle class is vibrant.
People are out there in malls, buying things.
Their GDP is growing three times faster than developed countries.
Investing in emerging markets is very profitable.
We are solely focused on emerging markets.
That’s all we do and we do it very well.
>>Voiceover: Through careful, patient and rigorous analysis and investment,
Excel Funds has grown to become the authority in emerging markets,
capitalizing on the unique strengths
of a select group of portfolio managers
with on-the-ground expertise
in each of the countries where we invest.
>>Julie Makepeace: The portfolio managers are
very carefully selected, very carefully managed.
And these are award winning, best in class subadvisors
who are resident in the investee countries who have their fingers
on the pulse of the economies in their respective countries.
>>Paul Mesburis: We want to understand subadvisor's corporate culture.
We want to understand the way that people are compensated there.
And we also want to understand the investment philosophy to come up
with the best subadvisor for Canadian retail investors.
>>Voiceover: But what is it that makes emerging markets
such a compelling investment right now?
>>Bhim D. Asdhir: You may have seen this S-curve.
Most of the developed countries are at the top of the S-curve.
They are over-leveraged.
They have reached a saturation point
where the consumption is growing at a steady pace.
When you look at emerging markets,
they are at the bottom of this curve.
And they are going through this rapid phase of growth.
>>Voiceover: For the next 30 or 40 years,
emerging markets such as India and China
will almost certainly continue to accelerate up this curve,
delivering potentially outstanding results for investors.
>>Bhim D. Asdhir: When we launched our company in 1998,
there were one million cell phones in India.
Today, they have more than 500 million cell phones in India.
If you are a cell phone company,
where are you going to go to make money?
>>Voiceover: Of course simply being invested in emerging markets
is no guarantee of superior returns.
Our top-down quantitative analysis helps to determine
in which countries and to what extent
to weight our capital for optimum performance.
This is key to successfully investing in emerging markets
and we have spent considerable time and money
to develop sophisticated proprietary models for this purpose.
But the models don’t guide stock selection
and we want to go deep into emerging markets.
This is why we have aligned ourselves
with award winning subadvisors
demonstrating a superior track record.
>>Bhim D. Asdhir: During bull markets, we overweight mid-caps
and we underweight cash and large caps.
During bear markets, we overweight large caps and cash
and underweight mid-caps.
If you do that consistently, you will outperform the index.
That is one of many things that we do here at Excel Funds
and that’s why our performance has outperformed the index.
>>Voiceover: With a wide range of funds to choose from,
Excel Funds offers investment opportunities for every type of investor.
>>Bhim D. Asdhir: Investors need to be where the growth is.
They need to have exposure to emerging markets.
Excel Funds is an excellent way to get that exposure.