BRIC


Recent updates have viewed opportunity in Brazil and China.

Jyske Bank sent me a note that they are recommending investments in the BRIC countries (Brazil, Russia, India and China) to their advisory clients.

They wrote:  Together, these 4 countries generate approximately 27% of the world´s Gross Domestic Product (GDP).  The average annual GDP growth of a BRIC nation was greater than 7% before the recession, as compared to approximately 2% for a G-7 nation.  Last week, the 3Q growth rate for the Chinese economy was released, beating expectation with an outstanding 8.9%.

The future growth of the world economy depends largely on the BRIC economies continuing growth.

We believe that any well diversified investor need to have emerging market exposure in their portfolio. We therefore suggest investing in one of the best performing BRIC funds, namely iShares MSCI BRIC Index Fund tracking the MSCI BRIC Index. The fund is presently invested in 260 different companies.

Please see the above attached fact sheet for further information.

We recommend allocating as below :

If you have a Low Risk profile                   : up to 5%
If you have a Medium Risk profile             : up to 10%
If you have a High Risk profile                  : up to 15%

However, investing in BRIC countries is not for the faint of heart. During the recent recession BRIC`s lost about 67% in share price, peak to trough. Since the bottom in March the markets have recovered about half of this. When investing in these market you should consider it to be a long-term investment.

The iShares MSCI BRIC ETF is traded on the New York Stock Exchange code is BKF.

This fund’s top holdings as of September 30, 2009 are:

PETROBRAS – PETROLEO BRAS-PR     4.56%
CHINA MOBILE LTD     4.22%
OAO GAZPROM-REG S ADS     4.10%
PETROBRAS – PETROLEO BRAS     3.77%
RELIANCE INDS-SPONS GDR 144A     3.51%
CIA VALE DO RIO DOCE-PREF A     3.18%
ITAU UNIBANCO BANCO MULTIPLO SA     3.09%
INFOSYS TECHNOLOGIES-SP ADR     2.80%
HDFC BANK LTD-ADR     2.64%
CHINA LIFE INSURANCE CO-H     2.51%

The top countries where the fund is invested at this date are:

Brazil     33.26%
China     23.27%
India     15.92%
Russia     13.28%
Hong Kong     13.10%

Sector allocation is shown below:

bric-chart
The Average Annualized Total Returns (NAV)  quarterly, as of 9/30/2009

1 Year     21.77% versus the MSCI BRIC Index  21.95%

Since Inception -13.92% compared to -14.64% for the MSCI BRIC Index

The Morgan Stanley Capital Index performance has been:

1 year   21.95%
2 years 11.93%
5 years 23.67%

Here is a chart of the fund’s performance since inception from Google.finance

bric-chart

The Price to Earnings Ratio of the fund is currently 21.27 and the Price to Book Ratio Price  3.61

Total Annual Fund Operating Expenses of the fund are  0.72%

Your can buy this ETF from almost any broker.   If you have an account with Jyske Global Asset Management, you can learn more about this fund and how it might fit your needs from Thomas Fischer at fischer@jgam.com

Non US investors with an account with Jyske Bank can obtain details from Rene Mathys at mathys@jbpb.dk

Gary

Here is the balance of our 2009 course and tour schedule.

Nov. 9-10 Imbabura Real Estate Tour

Nov. 11-14 Ecuador Coastal Real Estate Tour

December 6-8 Blaine Watson’s  Beyond Logic & Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 Ecuador Coastal Real Estate Tour

In 2010 Merri and I will personally teach on five dates.

Arrival dates are always one or two days earlier. Please double check with us before booking flights.

Feb. 11          Super Thinking + Quantum Wealth Florida
Feb  12-14     International Investing & Business Florida
Mar. 11-14     Super Thinking + Spanish Course Florida
June 24         Super Thinking + Quantum Wealth North Carolina
June 25-27    International Investing and Business North Carolina
Oct.    7           Super Thinking + Quantum Wealth North Carolina ($749)
Oct.  8-10      International Investing & Business North Carolina ($749)
Nov.   4-7       Super Thinking + Spanish Course Florida

We hope you will join us.



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