Beyond Borders Investment Strategies (BBIS) bought iShares MSCI Chile Capped ETF (Ticker: ECH) in January and February 2014 as Chilean stocks have been trading at significant discounts to their long-term historical valuation levels. BBIS has found the expected returns for ECH to be 12% per year over the next 8 years. Valuations of Chilean equities have been negatively affected by an anticipated global oversupply of copper in 2014-2015. In the attached report, I analyzed five positive drivers for the expected performance of the Chilean equities. One of these drivers is local, but the other four are related to economic, business and political developments in countries thousands miles away from Chile, such as China and the United States. The report also discusses risks to my expected return projections. These risks emanate from political, economic, and financial domains. To read the full report, please Click Here.
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