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Recent Winners: Chile's Growth Paid Off for This Fund |
Published:
August 1,
2007
When
most people think of income investing, high-yield (but stodgy)
companies like Altria (NYSE: MO) and Exxon Mobil (NYSE: XOM)
typically spring to mind. However, as its readers can attest, StreetAuthority's
High-Yield Investing newsletter goes off the
beaten path in search of securities with monstrous yields and
above-average total return potential.
Occasionally, that means Editor Carla Pasternak ventures outside
the borders of the U.S. to locate new ideas. Such was the case
in January 2006, when Carla made Chile Fund (NYSE: CH,
$19.98)
her "High-Yield Security of the Month." At the time, the fund
yielded an amazing 25.3% and had already delivered sensational returns of
+942% since its inception 15 years earlier
-- and Carla saw even more gains on the horizon.
From a big-picture perspective, Chile's Santiago Stock Exchange
appeared to be on the verge of an extended rally. As Carla
noted, Chile was one of Latin America's fastest-growing nations,
with a dynamic, commodity-driven economy and the highest credit
ratings in the region.
And Chile Fund's manager, Matthew Hickman, was targeting some of
the country's most established blue-chip companies, primarily
favoring undervalued firms with attractive growth prospects. For
the most part, that led to a portfolio heavily tilted towards
"economic growth engines," such as power generators and paper
makers, as well as companies benefiting from Chile's robust
consumer spending.
Since Carla Pasternak featured the Chile Fund, everything has gone according to plan. Top
holdings like brewer Cervecerias Unidas and chemical maker
Sociedad Quimica y Minera have soared +61% and +83%,
respectively, over the past year alone. Meanwhile, the fund
itself has posted impressive net asset value (NAV) growth of +27% so far this year
-- on the heels of a +33% gain in 2006.
Now, Carla has singled out yet another country poised to deliver
market-thumping gains. Like Chile, this nation is home to a
booming, export-driven economy (one of the largest in all of
Asia) and some of the most dominant companies on the globe.
Meanwhile, Carla's favorite closed-end fund, which she has
singled out as her "High-Yield Security of the Month"
for August 2007, offers broad
exposure to this fast-growing, but still undervalued nation --
which has attracted the interest of none other than Warren
Buffett.
On top of that, this closed-end fund has just announced a special distribution of $14.51 per
share -- giving it a projected forward yield of 34.4%!
To learn more about our High-Yield Investing newsletter, and to
read a detailed profile of Carla Pasternak's August 2007 "High Yield Security
of the Month," please
visit
this link.
Good investing!
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Nathan Slaughter
Editor
Half-Priced Stocks, The ETF Authority
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Stocks |
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Income Security
of the Month
Our "Income Security of the Month" for August 2008 invests in a
fast-growing overseas market that doesn't get much exposure in the
mainstream financial press. And although it typically makes enormous
annual dividend payments -- it has paid an average dividend of
25.5% per year over the past five years -- this fund is perhaps
most appealing for its total return potential. Specifically, the
fund has delivered total returns of +178.9% since 2003,
and it ranks in the top 10% of its category over the past decade.
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10 Stocks for 2008!
Since we began publishing this report back in 2003, the picks we've
featured have consistently beaten the broader market -- delivering average
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2-to-1 margin. Act now to reserve your copy of our newest report -- Top
Ten Stocks for 2008. |
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