The American Israeli Shared Values Fund is returning 21.32 percent so far this year, according to a recent report from Dow Jones Newswires.
The mutual fund — which has investment assets of about $500,000 in a portfolio of approximately 40 companies that trade in the United States but are either based in or do business in Israel — is returning at a rate that is nearly double the Morningstar Emerging Markets index’s 11 percent, Dow Jones Newswires reported on June 12. As of July 7, it’s up 14 percent for the year.
According to the fund’s Web site, one of the fund’s main objectives is to benefit Israel by establishing an investment vehicle through which Americans can express their solidarity with Israel.
“I had been investing in Israel stocks for a while on my own and I thought it was really strange that there were no mutual funds that did the same,” Jamia Jasper, founder and president of AmerIsrael Capital Management LLC, told Dow Jones Newswires.
“The companies over there are conservatively managed and the economy is in a stronger position because the banks never got into subprime lending. There is a lot of upside potential,” Dow Jones quoted her as saying.
Many of the larger mutual funds simply overlook the region because of the political connotations, she added.
Cellcom Israel Ltd., one of Jasper’s favorite companies, accounts for approximately 4.5 percent of the fund, according to Dow Jones Newswires. The company reportedly is the largest wireless provider in Israel with a 34 percent market share. Other stocks in the fund include Noble Energy in the United States and Elbit Systems in Israel.
The fund still has assets under $10 million, so it hasn’t received a ticker symbol. For more information, contact a financial adviser or visit www.sharedvaluefund.com.