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Emerging Market Companies - Having a Multinational Parent Makes a Big Difference
"last year Aberdeen Asset Management, the world's largest emerging market manager of closed-end funds, commissioned Yale University's Martijn Cremers to carry out a study on locally-listed EM affiliates of multinationals. In his study, Cremers found that the share price performance of these listed affiliates was vastly better than that of both emerging and developed markets broadly as well as their own local markets."
"This pattern of out performance was consistent across each region."
These companies have been outperforming in both up and down markets over the last 14 years and look good going forward.
I've talked about some of these names before, such as Coca-Cola FEMSA and Wal-Mart De Mexico, which are both available on the pink sheets. Wynn Macau is another one, as is Kimberly Clark de Mexico.
Wonder if there is a simple way to collectively invest in this group of companies using an ETF or mutual fund approach. I assume you invest by buying individual stocks. Are pink sheet offerings available through most brokerage accounts?
I own WAEMX, MAPIX, MATFX, MSMLX, OAKIX, VWO but have not yet cross referenced this list against them.
Reply to @bee: The list you offered above is terrific and highlighted quite a few international ones I was not aware of. The ones I've discussed previously on the boards are mainly foreign arms of familiar US companies.
This would make for a really interesting ETF, but unfortunately one would have to go individually at this point.
Some of the pink sheet stocks are illiquid to varying degrees. There's a fairly decent interest in Wal Mart De Mexico and Coca Cola FEMSA has both a US ADR (KOF, I believe) and a foreign ordinary version on the pinks (I believe it's COCSF.PK, illiquid) Wynn Macau is decently liquid although highly volatile. I haven't been able to purchase Nestle Malaysia or Unilever Indonesia - I've looked at both.
FEMSA (FMX on the nasdaq, FMXUF - I think - on the pinks, the latter being highly illiquid) owns both stakes in Coca-Cola FEMSA and Heineken, as well as a few other things.
Swire (SWRAY.PK) also owns a large Coca-Cola Bottling operation in Asia and parts of the US. Swire also owns a large stake in Cathay Pacific Airlines, but that hasn't done so well lately.
Jardine Matheson (available on the pinks in either Jardine Matheson or Jardine Strategic form in both ADR and foreign ordinary form, although all are varying degrees of illiquid) is the majority owner of Dairy Farm International (separately available - DFILF or DFIHY on the pinks and quite illiquid) and Dairy Farm owns IKEA stores in Hong Kong and Taiwan, as well as GNC and 7-11 franchises in Asia. Dairy Farm also owns a 50% interest in Maxims (not public), which runs Starbucks in Hong Kong and Macau. Dairy Farm has - I think - become overbought, but it's an interesting conglomerate made of a lot of different retail businesses in Asia. Additionally, Jardine's Jardine Restaurant Group is one of Pizza Hut's largest foreign franchisees and runs KFC outlets in Taiwan. The separate stock for Dairy Farm, at least according to records (Morningstar, etc) was flat in 2008 (past performance is no guarantee of future returns, certainly.)
I own Jardine and have contemplated Swire at times.
Comments
Hey Scott,
Wonder if there is a simple way to collectively invest in this group of companies using an ETF or mutual fund approach. I assume you invest by buying individual stocks. Are pink sheet offerings available through most brokerage accounts?
I own WAEMX, MAPIX, MATFX, MSMLX, OAKIX, VWO but have not yet cross referenced this list against them.
This would make for a really interesting ETF, but unfortunately one would have to go individually at this point.
Some of the pink sheet stocks are illiquid to varying degrees. There's a fairly decent interest in Wal Mart De Mexico and Coca Cola FEMSA has both a US ADR (KOF, I believe) and a foreign ordinary version on the pinks (I believe it's COCSF.PK, illiquid) Wynn Macau is decently liquid although highly volatile. I haven't been able to purchase Nestle Malaysia or Unilever Indonesia - I've looked at both.
FEMSA (FMX on the nasdaq, FMXUF - I think - on the pinks, the latter being highly illiquid) owns both stakes in Coca-Cola FEMSA and Heineken, as well as a few other things.
Swire (SWRAY.PK) also owns a large Coca-Cola Bottling operation in Asia and parts of the US. Swire also owns a large stake in Cathay Pacific Airlines, but that hasn't done so well lately.
Jardine Matheson (available on the pinks in either Jardine Matheson or Jardine Strategic form in both ADR and foreign ordinary form, although all are varying degrees of illiquid) is the majority owner of Dairy Farm International (separately available - DFILF or DFIHY on the pinks and quite illiquid) and Dairy Farm owns IKEA stores in Hong Kong and Taiwan, as well as GNC and 7-11 franchises in Asia. Dairy Farm also owns a 50% interest in Maxims (not public), which runs Starbucks in Hong Kong and Macau. Dairy Farm has - I think - become overbought, but it's an interesting conglomerate made of a lot of different retail businesses in Asia. Additionally, Jardine's Jardine Restaurant Group is one of Pizza Hut's largest foreign franchisees and runs KFC outlets in Taiwan. The separate stock for Dairy Farm, at least according to records (Morningstar, etc) was flat in 2008 (past performance is no guarantee of future returns, certainly.)
I own Jardine and have contemplated Swire at times.