Wednesday, August 28, 2013



The Global X FTSE Columbia 20 ETF invests its total assets in the securities of companies that are listed on the Colombian Stock Exchange, 80% of its total assets are invested in the ARD's, GDR's and the underlying indexes. After Argentina, Peru is the fourth largest economy in South America. The GDP of Colombia is at $400billion, and has the most amazing story of Foreign Direct Investment. With an expected GPD growth of 4.4% in the current year, Columbia is eagerly expecting a down pour of $13 billion of foreign direct investment. The economy sees a relatively slow and low inflation rate and thus portrays to be one of the most desired areas for investors to peep into. The state- owned oil Company Ecopetrol is among the most important and influenced asset within the fund.

The third largest producer of oil has been capable of an average of 5% increase in the GDP growth in the last decade. This country has seen a flood of foreign investment and in turn has progressed with its rapid GDP growth which as a cycle effect has further resulted in investment in its emerging markets, thus bringing a boosting effect in its economic activities. The government of this part of Latin America has launched programmes to increase its capital expenditure on the following areas: public works, housing and infrastructure and energy industry.

Due to the recent Economic Crises in Europe and the fall in the base materials demand in China, Columbia has been facing a few problems, but its special economic stimulating programmes have been quite effective. The reduction in the benchmark rates of the Central Bank Banco de la Republica Colombia has been extremely beneficial to the economy.

According to reports of the United Nations Commissions the Colombia Direct Foreign Investment shows that prior to 2012 when the percentage of increase in these investments shows a remarkable boom in 2008 which was acclaimed as the best year . The year 2012 has seen a total of $12 billion in the foreign investment sector. The commodities surge of this country has been basically financed by these investments resulting in the explosion of domestic consumption and expansion and betterment of the middle class. The developed markets are now eyeing Columbia as the eye candy for investments in Call Centers and Administrative sectors.

The focus of the government budgets are towards the security situation and an export oriented growth. The present economy of Colombia is facing a challenge due to the reformation of the pension system. You can see the effects of the government in reducing the public debts. Over the past the Colombian economy has definitely seen an increase in the growth but all has not been easy due to the serious internal security problems. The guarantee of $2.7 billion provided by the IMF helped the economy to take a better position of its currency.  By the year 2020 the total population of Colombia would have crossed 50 million and 68 million by the year 2050 increasing the employed population along with it to 28 million by the year 2050. All this focuses on a high potential of growth of the economy.

Ecopetrol has been the driver of the rally in the GXG ETF. June 2013 has been growing tremendously by a net interest income of nearly 22% in the year 2012. The profitability of this bank has been on an increasing growth rate by two percent every year.




HOW A $17,537 CASH INVESTMENT BECAME A $4 MILLION PROPERTY GENERATING A YEARLY NET INCOME OF $315,000!
(AND THE STEP-BY-STEP DETAILS OF OTHER OUTRAGEOUSLY PROFITABLE REAL-LIFE PROPERTY DEALS)

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