Emerging Markets

J Le3-23-11

Overview• Latin America– Mexico and Brazil are the stars– LA: Projected 6% growth by IMF in 2011– DEMAND: energy, material/ag commodities – More $ for commodities = more infrastructure and

consumer spending– Advantages• Lots of Nat Res. • Growing Middle class• Great connections to Europe and Asia

Wide Exposure

• NYSE: AND* (40 company ETF)– Nasdaq: SCCO– NYSE: BVN

– Peru EPU*

Colombia• Stabilized political situation• Fastest growing oil producer in LA• One of the largest coal exporters and low costs to

boot• Many free trade agreements w/ Asian and other LA

countries• Citi estimate 4.5% growth in 2011• Raised debt rating from BBB- TO BB+• Plays:– COLX * GXG* EC# (oil) CIB# (FS bank)

Argentina• Large food producer• 2nd largest corn exporter• 3rd largest soy exporter• Top producer of beef and lamb• Newly discovered NatGas = energy independence • Trade surpluses = ^ FE reserves and gold holdings• Plays:– ARGT* CRESY# (farm company) TGS#(Natgas)