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EFTA – European
Fair Trade Association |
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A network of 11 Fair Trade
organisations in nine European countries which import
Fair Trade products from some 400 conomically disadvantaged
producer groups in Africa, Asia and Latin America.
EFTA's members are based in Austria, Belgium, France,
Germany, Italy, the Netherlands, Spain, Switzerland
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Emerging Markets |
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Typically includes markets
within countries that have an underdeveloped or
eveloping infrastructure with significant potential
for economic growth and increased capital market
participation for foreign investors. These countries
generally possess some of the following characteristics;
per capita GNP less than $9000, recent economic
liberalisation, |
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debt ratings below investment
grade, recent liberalisation of
the political system and non membership of the Organisation
of Economic Cooperation and Development. Because many
merging countries do not allow short selling or offer
viable futures or other derivatives products with which
to hedge, emerging market investing entails investing
in geographic regions that have underdeveloped capital
markets and exhibit high growth rates and high rates of
inflation. Investing in emerging markets can be very volatile
and may also involve currency risk, political risk and
liquidity risk. Generally a long-only investment strategy. |
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Emerging Markets Debt |
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Debt instruments of emerging market
countries. Most bonds are US Dollar denominated and a
majority of secondary market trading is in Brady bonds. |
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Equities |
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Ownership positions in companies
that can be traded in public markets. Often produce current
income which is paid in the form of quarterly dividends.
In the event of the company going bankrupt equity holders’
claims are subordinate to the claims of preferred stockholders
and bondholders. |
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Equity Hedge |
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Also known as long / short equity,
combines core long holdings of equities with short sales
of stock or stock index options. Equity hedge portfolios
may be anywhere from net long to net short depending on
market conditions. Equity hedge managers generally increase
net long exposure in bull markets and decrease net long
exposure or are even net short in a bear market. |
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