Saturday, April 05, 2008

Emerging Market Investing for my Mom

I've mentioned that I wanted to reduce the allocation to bonds in my Mom's portfolio. I targeted the ACM Global Bond Fund in her portfolio, which has been underperforming:

It's not quite as bad as this chart :) They've paid out a 3 cent a share dividend each month, so we've made about 3% a year since 2003. I asked the manager at her bank to suggest some equity investments to replace it with. Given we have more equity exposure to the US and Europe than to Asia he suggested adding Asian equities. So we'll put most of the money into a UBS Asia ex-Japan fund and smaller amounts in an HSBC India fund and a UBS Brazil fund. Yes, I know Brazil isn't in Asia :) We won't re-invest all the money from this bond fund. I plan to take $100k from the profits of this, the alternative investment that matured and other cash in the account and invest it with Thomas White through our other broker. When all this is done we should have signficantly more equity exposure and roughly equal amounts in the US, Europe, and Asia. Unlike most investors who overinvest in their domestic markets the only investments we have in my Mom's home market are her apartment and a couple of small bank accounts.

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