Introducing the "
Emerging Money Global EM Index
If you were one of the top 30-40 global multinational big cap
companies who consider the world to be your customer base, you
had a great year in 2013 and your stock most likely did very
As the G3 economies began to show some sustainable signs of
normalizing growth, companies who can balance recovery at home
(US and Europe typically) with continued expansion and growth in
emerging markets found the environment ripe to grow both the top
line and the bottom line.
While local (big cap) players in EM struggled in many cases in
2013, the global players did not.
Companies like General Motors (GM), General Electric (GE) or
Siemens (SI) found growth in Asia, Middle East, Africa and Latin
America to be building on the same foundation they committed to
many years earlier when began focusing their global
While emerging markets are currently pricing in a lower growth
trajectory than that of the last decade the same principles for
that growth remain. Investors who are looking for superior
combined with cutting edge technology, resources, and expertise
can continue to feel safe investing in the same multinationals
who will continue to stake their incremental growth on emerging
At Emerging Money we continue to monitor different grouping of
companies to give our investors different strategies for gaining
exposure to the globe. In early 2013 we created the
"Emerging Money Global EM Index (EMEGI)" to track a group of 30
top multinational companies operating across a full spectrum of
sectors and industries.
The thread that binds these companies together is that they
are global players we feel are best positioned to be successful
in these markets today and tomorrow.
The EMEGI was +24.55% in 2013 on an average weighted basis.
The P/E of the index is 17.4 or almost directly in line with the
SPX current 17.43%.
We take base our PE is figured on current earnings, taking an
equally weighted average approach.
We expect the global recovery to continue into 2014 with
industrial players and miners to see greater returns than in
2013. We invite you to track this index with us as we
update and rebalance along the way.
Here are a handful of the companies that make up the index and
where we believe there is greater opportunity in 2014. Avon
(AVP), Diageo (DEO), Fiat (F IM (Italy)), General Electric (GE),
Siemens (SI) Billiton (BHP)