According to recent reports single country funds- which were exceptionally popular with retail investors in the 1980's as they provided a simple way to invest in foreign stocks- are now battling for survival, as investors tire of their poor performance.
A Wall Street Journal report last week revealed that one of the largest such funds for US investors, The Mexico Fund Inc., following a shareholder revolt, decided to allow investors to trade in all of their share in the fund for the underlying securities in Mexican companies. 'We decided it was better for the fund and shareholders to have a practical exit,' explained the fund's long-time manager, Jose Luis Gomez.
Although the Mexico Fund is hoping that only a small fraction of investors will decide to sell, the Journal predicts that the majority of its institutional investors, such as Harvard University, will trade in their shares. The resultant flood of Mexican shares onto the market could drive the price down, according to analysts.
The Mexico Fund is not the only such fund to be experiencing grave problems either. The Morgan Stanley Africa Investment Fund, and the Chile Fund which is managed by Credit Suisse First Boston also recently announced that investor sentiment is bearish on single country funds at the moment.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment