Avarice Submerging Markets Fund® is a viable investment choice for the investor looking to reap benefits from the inevitability of economic transformations brought about due to climate change. The fund invests in companies located in flood-prone areas around the country and around the world.
Sample products from some companies represented in the fund are provided in the sidebar.
Avarice Submerging Markets Fund has beat the annualized standard mean deviation CFI market indicator for five years running with returns of 29 percent below the International Submerging Market Index (ISMI) of 24 percent, as well as those of similar and competing submerging market mutual funds and dividend producing ETFs.
With nearly seven percent of the world's manufacturing facilities lying at elevations fewer than eight feet above sea level, Avarice Submerging Markets Fund managers are easily able to identify companies with both hard and soft assets that will almost certainly be underwater soon. Indeed, with the trading philosophy of "buy low, sell even lower,” it is expected that the fund will continue to show outstanding performance in both the near and long term.
Stock markets, especially submerging markets, are fluid and can sink significantly in response to government, market, economic or climate changes. Near-shore businesses are particularly susceptible to overflowing order streams, sinking debt, seaside construction, coastal development and tidal surges, all of which are magnified in submerging markets. The risks are particularly significant for funds that focus on companies with major facilities north of 40 degrees latitude and in southern portions of Chile and Argentina.
While less volatile than the ISMI, Avarice Submerging Markets Fund is still risky as volatility is transferred to equity holdings while exposure to global indicators persist. Moreover, submerging markets are especially sensitive to foreign-currency droughts to the extent that investors in submerging markets can suffer from simultaneous rising ocean levels and falling currency exchange rates.
The fund's expense ratio of only 18.63 percent is nearly two-thirds of that of most other fundamentally weighted submerging markets stock funds.
With money flooding into submerging markets, it is likely that the Avarice Submerging Markets Stock Fund will soon be closed to new clients. For more information about Avarice Submerging Markets Fund, to request a prospectus, or to establish an investment account, contact your local broker or one of our offices.
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