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Canadian investors have historically maintained a home country bias on the belief that domestic companies will perform better than foreign companies and that foreign companies are riskier than domestic companies. The home country bias is particularly evident when it comes to emerging markets, which have not only outperformed developed markets over the long-term but are also less risky. Arguably, the home country bias is demonstrated…
Taking a balanced approach to investing in emerging markets is critical to getting the highest possible risk-adjusted returns, while minimizing risk.
China's services industry's rise in the first half of 2015 displayed in an infographic in the China Daily. Design by Xing Zhonghao. Data Source: National Bureau of Statistics
In its effort to shore up its slowing economy and take steps to facilitate the inclusion of the yuan in the IMF’s basket of reserve currencies (Special Drawing Rights or SDRs), China has effectively devalued its currency twice in two day. On Tuesday, China surprised the markets by announcing a 2% devaluation of the yuan. Then on Wednesday, the People's Bank of China (PBOC) set…
When it comes to investing in emerging markets (EM), an active management strategy has many distinct advantages over a passive management strategy typically used by index-based investments. Arguably, the debate surrounding active versus passive management – whether in emerging or developed markets (DM) - amounts to no more than a zero sum game, as either strategy has its own merits and pitfalls; and winners and…
Emerging market (EM) bonds will remain an attractive asset class in spite of a potential hike in interest rates by the US Federal Reserve. The Excel High Income Fund is well-positioned in local and hard currency EM bonds, credit and foreign exchange investments to generate the best possible risk-adjusted returns in the event of changes in market conditions.   Why are EM bonds attractive? EM…
The cut in Canadian interest rates on July 15 has made investing in emerging market (EM) bonds even more attractive. With the cut, Canadian 10-year government bond yields have fallen to 1.6%,i resulting in negative real yields for investors in Canadian bonds when core inflation of 2.2%ii is factored in. “It is now imperative for income seeking investors who have traditionally relied on Canadian bonds…
Portfolio Diversification EM bonds have a low correlation to other asset classes, creating an important opportunity for diversification, volatility and risk reduction and potential long-term risk adjusted returns. In addition, a key feature of EM bonds is that it offers geographic, credit quality, duration and currency exposure diversification. EM countries, on average, have higher economic growth, greater monetary and fiscal policy flexibility, lower debt levels…
China’s long-term outlook remains compelling in spite of the recent correction in its A-shares market which fell almost 30% from its peak and triggered volatility in the Hong Kong H-shares market. “It’s a case of the market rising too fast,” says Christine Tan, Senior Portfolio Manager with Excel Investment Counsel Inc. The correction in the A-shares market was triggered by three main factors: (1) tight…
As emerging markets (EM) mature into the drivers of global growth, the structural case for investing in EM debt has become compelling. Once regarded as a niche asset class, EM Bonds have rapidly evolved into a fully integrated segment of the global bond market and are now a growing component of investors' portfolios. In fact, the size of the EM bond market has grown by…
Bhim Asdhir, President & Chief Executive Officer at Excel Funds Management Inc., claims a spot in the Wealth Professional Canada Hotlist 
Christine Tan remains bullish on the long term despite current slumps in China’s 10 trillion economy, expects a soft landing. http://www.bnn.ca/VOD/player.htm?ContentID=651065

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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.