Introducing the “Emerging Money Global EM Index” (EMEGI)
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 well.
As the G3 economies began to show some sustainable signs of normalizing growth, companies who could 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 strategies.
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 corporate governance 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 markets.
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.
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