Everyone is talking about China. Do not miss the opportunities in other CHI ..
Yes. Chile with an "LE" not "NA"
While the region is back in the favor of investors, it seems appropriate that Chile's mark. Economic star of Latin America
Chile is about twice the size of Montana and has an incredible coastline of 2650 miles. While only 3% of the land is arable, it has an amazing variety of climates and rich agricultural production. It gained its independence from Spain in 1810 and has 16 million inhabitants, of which 90% is Catholic.
Chile The story is somewhat similar to Ireland for its economic takeoff. From 1978 to 1988, the per capita income was only $ 100 to $ 1,510 to reach.
Then, both a military government followed by democratically elected governments initiated reforms of the labor market and opened the economy. Exports and foreign investment declined and debt came down. Foreign investors in Chile are treated in the same way as Chilean investors.
Chile's Take Off and steady growth
From 1991-1998 economic growth rose by an average of 8% and income per capita based on purchasing power has grown to $ 10,700. Since then, growth has slowed to a 4-5% range, but a total Chilean public and external debt at 50% of GDP is very low compared to other Latin countries.
Trade is very important for Chile with exports accounting for 25% of GDP. It is rich in natural resources (copper, wood, fruit and fish) and has been busy signing free trade agreements. A free trade agreement (FTA) with the U.S. came into force in January 2004 and now 90% of Chilean exports to the U.S. enter duty free. After a similar trade pact with South Korea last year, exports increased by 50%.
Current President Ricardo Lagos Escobar is under pressure to improve economic growth and bringing the stubbornly high unemployment 8% down. On the positive side, inflation and interest rates low at 2-3%. Chile has demonstrated fiscal discipline and has both a trade surplus and a budget surplus.
How to take advantage
There are no country-specific ETFs for Chile, but there is the Chile Fund (CH), which is a closed-end fund managed by Credit Suisse Asset Management. It is an increase of 53% in the last year, traded at a 7.7% discount to intrinsic value and sports a yield of 4.6%. Keep in mind that 19% of the fund invested in only one copper company Empresas Copec SA and the annual fee is high at 1.80%.
Another alternative would be the iShares Latin America 40 (ILF) that invests in Mexico, Brazil, Chile and Argentina. It is an eye opening of 67% over the past twelve months with an annual fee of only 0.55%. Currently, 49% of these exchange-traded fund invested in Brazil, 38% in Mexico, 10% in Chile and 3% in Argentina.
Interested investors can also consider the ADR for Banco Santander (SAN) that is an excellent sofa and a good measure of the total economy. It is an increase of 42% over the past year and an increase of 11% so far this year. Banco Santander is one of the 30 companies in the Chartwell Global 30 Index, which is an alternative to the Dow Jones Industrial Average.
About: Carl Delfeld is head of global consulting firm Chartwell Partners and is editor of the "Chartwell Advisor" and "Asia Investor Intelligence" newsletters. He served on the Board of Directors of the Asian Development Bank in Manila and is the author of The New Global Investor (iUniverse: 2005). For more information go to or call
Friday, 30 May 2014
Thursday, 15 May 2014
How to Choose the Right Share Class
You want to choose the no-load or institutional share class. If you are a no-load investor who is determined to buy a fund that primarily broker-sold, go through a supermarket and opt for the D shares.
If you use a broker or planner, the decision about whether to opt for the A, B, or C share class comes down to your own time horizon and to a lesser extent, how much you invest. If you are planning to invest for the long term - say, 10 years or more - the shares will always make more sense for you than the B or C shares. That's because the shares' lower running costs, the higher fee you pay to get in. When Morningstar compensate, we believe investing in the long term and that is why we tend to recommend shares than B or C shares , if you 're a Premium Member, you will find that our analysts Reports of broker-sold funds usually applies to the A shares, too.
So if you ever use B or C shares? Perhaps, if you expect to hold. Fund a particular kind for a short period of time If you plan to create a fund for only a year or two have, for example, you can opt for C Shares, and if your time horizon is around five years or less, the B shares of the way to go . Morningstar Cost Analyzer tool can help you find the right share class given your expected time horizon and the amount of money you have to invest to be determined. (Cost Analyzer is available for Premium Members of , for a free trial membership, click here.)
Protect yourself: Know your rights and Ask Questions
Many brokers and planners work hard to select the appropriate share class for their clients but you should also be aware of unscrupulous practices in this area. B and C shares have higher costs, and a portion of these fees, called 12b-1 fees, go directly to the agency by year. For example, some brokers tend to B or C shares recommended, even if not the best deal for their clients. Some fund shops - including Franklin - have stopped the sale of B shares at all.
To ensure that you are in the right class shares for your needs and time horizon, it never hurts to ask your broker why he or she is recommending a particular share class of a fund. What assumptions are they making about your business period? He or she has a financial incentive to recommend one share class over another?
Also be sure to ask if your total investment in a particular fund family qualifies you for a reduced sales charge. These breakpoints often kicks in when your total investment in the Fund as a whole family reaches $ 25,000 or more, and they can save you money. And even if you do not meet the minimum level active, you may still be able to qualify for the discount if you are a "letter of intent stating that you intend to make enough money to qualify for the investing in sign of time (usually one year). a certain period discount Some brokers have recently gotten in trouble for failing to provide the bulk discounts, so your broker should be well aware of the problem and can tell you if you are eligible.
If you use a broker or planner, the decision about whether to opt for the A, B, or C share class comes down to your own time horizon and to a lesser extent, how much you invest. If you are planning to invest for the long term - say, 10 years or more - the shares will always make more sense for you than the B or C shares. That's because the shares' lower running costs, the higher fee you pay to get in. When Morningstar compensate, we believe investing in the long term and that is why we tend to recommend shares than B or C shares , if you 're a Premium Member, you will find that our analysts Reports of broker-sold funds usually applies to the A shares, too.
So if you ever use B or C shares? Perhaps, if you expect to hold. Fund a particular kind for a short period of time If you plan to create a fund for only a year or two have, for example, you can opt for C Shares, and if your time horizon is around five years or less, the B shares of the way to go . Morningstar Cost Analyzer tool can help you find the right share class given your expected time horizon and the amount of money you have to invest to be determined. (Cost Analyzer is available for Premium Members of , for a free trial membership, click here.)
Protect yourself: Know your rights and Ask Questions
Many brokers and planners work hard to select the appropriate share class for their clients but you should also be aware of unscrupulous practices in this area. B and C shares have higher costs, and a portion of these fees, called 12b-1 fees, go directly to the agency by year. For example, some brokers tend to B or C shares recommended, even if not the best deal for their clients. Some fund shops - including Franklin - have stopped the sale of B shares at all.
To ensure that you are in the right class shares for your needs and time horizon, it never hurts to ask your broker why he or she is recommending a particular share class of a fund. What assumptions are they making about your business period? He or she has a financial incentive to recommend one share class over another?
Also be sure to ask if your total investment in a particular fund family qualifies you for a reduced sales charge. These breakpoints often kicks in when your total investment in the Fund as a whole family reaches $ 25,000 or more, and they can save you money. And even if you do not meet the minimum level active, you may still be able to qualify for the discount if you are a "letter of intent stating that you intend to make enough money to qualify for the investing in sign of time (usually one year). a certain period discount Some brokers have recently gotten in trouble for failing to provide the bulk discounts, so your broker should be well aware of the problem and can tell you if you are eligible.
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