5 Oct 2018
- The average PE has increased 0.22x MoM from 16.22 to 16.44.
- The st dev has decreased 0.29 MoM from 5.94 to 5.65.
- The average yield decreased from 2.93 to 2.78 (-0.15%).
- Turkey is lowest multiple @ 7.35.
- Europe sector are generally low multiple.
- USA + India is highest multiple.
- Biggest NAV gain is Russia + Brazil.
Lowest discounts (best value).
IDVY – European based index composed of 30 stocks with leading dividend yields selected from companies in Eurozone countries. Slightly higher ongoing charges (0.40%) compared to the base European index (core Eurostoxx 50 at 0.10%). This has been a holding since 2006 and a core holding since 2012.
ITKY – The Fund seeks to track the performance of an index composed of companies from Turkey which is approximately 24 stocks.
Russia & Latam – these have value so have been added and are now fully on record. A fixed income version will be produced in the future.
Distribute or accumulate
There is no material risk difference between distributing index and accumulating index since the value one way of the other will revert to the investor either through the increased in value of the index or the dividend. There may be tax implications for example, income tax on dividends (for the distributions) compared to capital gains tax on sales (for the accumulations).
EUE = The Fund seeks to track the performance of an index composed of 50 of the largest companies in the Eurozone. (distributing)
CSX5 = The Fund seeks to track the performance of an index composed of 50 of the largest companies in the Eurozone. (accumulating)
For the purpose of returns the distributors are preferred over the accumulators due to the fact that the yield is explicitly shown. The yield is a real return (ie. actual dividends paid) from the dividends over the course of the past 12 months for the index.
The difference being the entities. The investor gets a lower p/e ratio which is one measure of value and a lower p/b which is a second measure.
To date, only the Russia index offers a discount to book. All trade at a premium which is common of most equity. The price to earning is a key measure although one should note that this is trailing data (usually the last 12 months). Performance is therefore looked at in relative terms to other indices and asset classes.