Emerging Market Growth Story
One of the most impressive emerging market growth stories over the past several years has been Colombia; a country of 46 million people that has aggressively pursued pro-market reforms by reducing regulation, eliminating trade barriers and promoting foreign investment. Colombia has become a critical exporter of natural resources including oil, gold, coal, and coffee, all while continuing to develop trade partnerships with major consumers such as the U.S. and China. The Global X MSCI Colombia ETF (GXG) provides investors with transparent access to this emerging economy, offering exposure to the top 20 companies listed on the Colombian stock exchange.
Fiscal Stability, Steady Growth
Colombia achieved steady growth at an annualized rate of 4.5% between 2001 and 2013. In 2013, the economy grew by 4.3%, up from 4% in 2012, as reported by the national statistics agency. (World Bank 2014, Bloomberg 2014)
Colombia’s Finance Minister estimates the GDP growth rate to increase to 4.7% in 2014, driven primarily by boost in the infrastructure projects worth $12bn (Wall Street Journal 2014)
In 2013, the World Bank’s “Ease of Doing Business” indicator ranked Colombia amongst the top 3 most favorable environments in South America to attract foreign investments. (World Bank, 2014)
Colombia has demonstrated a commitment to fiscal consolidation by keeping the budget deficit low at 2.41% in 2013, down from 2.45% in 2012.The government managed to narrow this budget deficit despite collecting lower tax revenue of U$52.1 billion during the year, slightly lower than its target of US$53.1 (Reuters, 2013)
Fiscal Stability, Steady Growth
Fitch recently raised Colombia’s credit rating from BBB- to BBB with a stable outlook. Moody’s also predicts an upgrade in Colombia’s rating based on its positive outlook and strong overall economic growth in the region. (Reuters 2013, Bloomberg 2014)
Colombia’s oil production has boomed in the last seven years, with output of crude almost doubling from 0.54 million barrels/day (bbl/d) to over 1.02 million bbl/d between 2005 and 2013. The Ministry of Mines and Energy predicts the Colombian oil production to reach 1.3 million bbl/d by 2020. (EIA 2014)
Colombia’s oil reserves had risen 2.9% to 2.445 billion barrels by the end of 2013, up from 2.38 billion barrels in 2012, to reach their highest levels. The government is now preparing for a shale debut by auctioning areas potentially containing shale crude to increase foreign investment into the sector (Reuters 2014)
As of 9/30/2014 Since Fund Inception 1 Year 5 Year Annualized Since Fund Inception*
NAV 174.14% -6.79% 6.33% 19.53%
Market Price 174.23% -6.43% 6.23% 19.54%
M1 ACOCP Index 1.2 189.89% -5.49% 7.69% 20.72%
Total Expenses 0.61 4
The performance data quoted represents past performance. Past performance does not guarantee future results. One cannot invest directly in an index. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-gxfund-1 or visit our website at www.globalxfunds.com
Register   Share   Get Call Back   Visit Global X Website
1 Fund and index performance prior to July 15, 2014 reflects the investment objective and strategies of the fund when it was the Global X FTSE Colombia 20 ETF and the underlying index was the FTSE Colombia 20 Index.
2 Chart of Underlying Index reflects the performance of the FTSE Colombia 20 Index from 2/6/2009 to 7/15/2014, and the MSCI All Colombia Capped Index from 7/16/2014 to 9/30/2014.
3 The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
4 As of 7/15/2014, pursuant to an Expense Limitation Agreement, the Adviser has agreed to reimburse or waive fees and/or limit Fund expenses to the extent necessary to assure that the operating expenses of the Fund will not exceed 0.61% of the Fund’s average daily net assets per year until at least August 1, 2015.
Investing involves risk, including the possible loss of principal. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Securities focusing on a single country maybe subject to higher volatility.
Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
The Fund’s name, investment objective and investment strategies changed effective July 15, 2014. Fund performance prior to July 15, 2014, reflects the previous investment objective and strategies of the Fund when it was the Global X FTSE Colombia 20 ETF.
This information is not intended to be individual or personalized investment or tax advice. Please consult a financial advisor or tax professional for more information regarding your tax situation.
The information presented here is for informational purposes only. It was prepared on information and sources that we believe to be reliable, but we make no representations or guarantees as to the accuracy or the completeness of the information contained herein.
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting www.globalxfunds.com. Read the prospectus carefully before investing.
Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates. MSCI Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by MSCI, nor does this company make any representations regarding the advisability of investing in the Global X Funds.