1. AN ANALYSIS OF EMERGING MARKETS
An in-depth look on the current status of emerging markets through the analysis of diversified emerging market equity mutual funds

2. Emerging Market Characteristics
A nation with a low or medium per capita income
Speedy economic progression
Strong Middle Class
Increased Consumer Spending
Economic Reform
Increased FDI
3. All examined mutual funds were from the diversified emerging market equity fundcategory.
4. Diversified Emerging Market Equity Funds
Less concentrated than BRIC Funds.
Less concentrated than regional or sector funds
More emerging markets are taken into account.
5. Where do emerging market managers mostly allocate their assets?
6. Country Allocation
Brazil
Asia-Pacific Region
Vietnam
South Korea
Hong Kong
7. BRAZILS GDP
8. BRAZILS EXPORTS
Exports = $200 billion dollars
Main exports (Iron Ore, Iron, Petroleum, Raw Materials)
Trade Surplus = $20 billion dollars.
9. Brazils Foreign Direct Investment
Heavy FDI from countries in the EuroZone.
Significant FDI inflows from China
$20 billion of FDI in first half of 2010
Invested in Infrastructure, Electrical Projects and Natural Resources
10. BRAZILS STRONG MIDDLE CLASS
30 million Brazilians added to middle class in past ten years.
Successful anti-poverty programs
Increased wages, disposable income and consumer spending.
Young Brazilian Women = Unique Consumer Sector
Increased E-commerce sales and credit card usage.
11. The strength of Brazils middle class.
12. ASIA PACIFIC REGION
13. ASIA-PACIFIC REGION
Massive amount of interregional trade
Hong Kong 67.1% of exports
Thailand 54.9% of exports.
Decreased dependence on Western Hemisphere.
Increase in GDP
8.0% GDP in 2010.
14. Asia-Pacific Interregional Trade
15. Asia-Pacific Economic Strength
16. VIETNAM
Middle class prosperity and economic reform
Jumped 10 spots in the Ease of Doing Business World Ranking
Increase in average income and disposable income.
60% of the population is below the age of 30
17. SOUTH KOREA
16th in the Ease of Doing Business ranking.
5.7% GDP Growth Percentage in 2010
Annual Average Income: 12,053,224 Won to 14,840,339 Won between 2005-2009
18. HONG KONG
Ranked 2nd in Ease of Doing Business ranking
Benefited from the recovery of China
GDP Growth Percentage of 6.0%
19. Strategies of Emerging Market Fund Managers
20. Strategies of Emerging Market Fund Managers
Bottom-Up Strategy
Detailed Company Research
Templeton Small-Cap Emerging Market Fund
Fundamental Analysis
Dimensional Fund Advisors Core Portfolio Price-Multiple Analysis
Virtus Emerging Markets Opportunities Fund Profitability Ratios
21. Strategies of Emerging Market Fund Managers
Combination of Bottom-Up and Top-Down Strategy
Causeway Funds
Alpha Model that is 2/3rd Firm Specific, 1/3rd Country Specific
Schroeder's Global Emerging Market Funds
Country Specific Factors
Exchange Rate, GDP and Interest Rate
Fundamental Research
Valuation Model for Three-Year Earnings Forecasts
22. Major Equity Holdings
23. Key Emerging Market Equity Holdings
Vale SA
Samsung
Taiwan Semiconductor Manufacturing
Frequently found in the top ten percentage of holdings.
Gazprom
HTC Corporation
Kia Motors Corporation
Found through a look of the percentage returns of 26 mutual funds.
24. VALE SA
A world leader in metals and mining
Significant emphasis on logistics strategy
9 billion dollars in the past 6 years.
Emphasis on Mineral Exploration
$5.92 billion dollars = 4th quarter profit of 2010.
25. Vales Success
26. Vales Success
27. SAMSUNG
Vision 2020
Goal of earning 400 billion dollars in revenue in 2020.
Supreme Innovation
Created the worlds first ever 512 MB Dynamic RAM Drive
Released the first ever 3D TV Model in 2010.
Financial Superiority
41.87 trillion won in revenue = 4th quarter of 2010
2010 = Most successful year in terms of revenue.
28. SAMSUNG
29. Taiwan Semiconductor Manufacturing
Worlds first dedicated semiconductor foundry
Expanded into the solar and lighting industries in 2009
Expansive Quality Management System
30. Taiwan Semiconductor Manufacturing
31. GAZPROM

Russian Government owns half of the company.

32. World leader in natural gas storage. 33. Reliable Gas Supplier 34. Owns 165 Gas Distribution Companies 35. Central Operations & Dispatch Department 36. Found as a top percentage returner in thirteen of the twenty-six mutual funds that were analyzed.