David R. Kotok Chairman & Chief Investment Officer Cumberland Advisors May 11, 2006 Conference Terrorism Tomorrow Malvern, PA 614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Terrorism Shocks
Feb 1993: WTC Bombing
1994
Aug 1998: Simultaneous U.S. Embassy Bombings – Nairobi, Kenya & Dar es Salaam, Tanzania
1996
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1998
Oct. 2000: USS Cole attacked in Aden, Yemen Sept. 11
Mar. 2004: Madrid train bomb
Nov. 2002: bombing of Hong Kong Shanghai Bank
2000
Chart 2
2002
Jul. 2005: London public transportation bombings
2004
2006
Financial Shocks
1994
1996
1998 1999: Y2K Fears
1994-1995: Mexican Peso Crisis
Jul. 1997: Thai Baht currency crisis
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2000 2000: Global Tech Stock Bubble Collapse
1998: Long Term Capital Mgt. / Russian Ruble collapse
Chart 3
2002
2004 2002-2003: Corporate Governance Failures (Enron, WorldCom, Parmalat)
Nov. 2002: Argentina default
2006
Reactions to Shocks Oct. 2000: USS Cole attacked in Aden, Yemen
Aug 1998: Simultaneous U.S. Embassy Bombings – Nairobi, Kenya & Dar es Salaam, Tanzania
Feb 1993: WTC Bombing 1990s:
Sept. 11
Apr. 1999: Financial Stability Forum (FSF) Created
Global Talks for Greater Cooperation begin
1994
1996 1994-1995: Mexican Peso Crisis
1998 1997-1998: 1999: Dialogue Y2K Fears Intensifies
Jul. 1997: Thai Baht currency crisis
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Mar. 2004: Madrid train bomb
2000 1999: Global 2000: Prep forTech Y2K Global Stock Bubble Collapse
1998: Long Term Capital Mgt. / Russian Ruble collapse
Chart 4
Nov. 2002: bombing of Hong Kong Shanghai Bank
2002
Jul. 2005: London public transportation bombings
2004 2002-2003: Corporate Governance Failures (Enron, WorldCom, Parmalat)
Nov. 2002: Argentina default
2006
Result: Global Bond Risk Premiums are Shrinking Outside the United States 1800 1600
LTCM
Basis Points
1400
9/11
1200
Argentina default
1000 800 600 400 200 0 1998
Daily Spreads of JPMorgan's Emerging Market Bond Index (EMBI)+ Sovereign over US Benchmark Bond Yields
1999
2000
2001
2002
Source: JP Morgan and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 5
2003
2004
2005
2006
Result: Global Bond Risk Premiums are Shrinking Inside the United States 1200
9/11
Argentina default
Basis Points
1000
LTCM
800 600 400 200 0
Mar-06 334 CS High Yield Index II (formerly DLJ High Yield Index) Spread to Worst expressed in basis points. Monthly data.
Apr-98
Apr-00
Apr-02
Source: Bloomberg and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 6
Apr-04
Apr-06
Result: Global Bond Risk Premiums are Shrinking In the United States Bond market Fear Index III (Junk Yields vs Investment Grade Corporate Yields) 20
Junk BondYields BasisPoints/Annum When: High Yield/Corp Credit Yield RatioIs: Above 177.2 * Between 133.9 and 177.2 133.9 and Below
17 15 13
Points/ Annum -286 20 157
Lehman Brothers High Yield Corporate Bond Yield ( )
11
20
Arg. default
% of Time 19. 1 68. 3 12. 6
17 15 13 11
10
10
9
9 Lehman Brothers US Corporate Credit Yield ( )
8 7
8 7
6
Monthly Data 1/31/1987 - 3/31/2006 (Log Scale)
5 4 239 228 218 208 199 190 181 173 165 157 150 143 137 131
Fear Index III (High Yield/Corporate Credit Yields) Extreme Fear
Source: Ned Davis Research chart B336A and Cumberland Advisors. Š Cumberland Advisors
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Chart 7
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
3/31/2006 = 140.2% 1992
1991
1990
1989
1987
Excessive Optimism 1988
4 239 228 218 208 199 190 181 173 165 157 150 143 137 131
9/11
LTCM
5
6
Equity Risk premiums are shrinking in stock markets, too. Let’s look around the world and see where and how‌
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Chart 8
Three Ways to View The World - 1998 1998 PPP ($mm)
1998 GDP ($mm)
World’s 10 Largest Stock Markets ($mm) Measured in USD at 12/31/98 exchange rates
World Total
40,219,240
%
World Total
29,633,310
%
World Total 25,683,171
%
1. United States
8,650,777
21.5
1.
United States
8,694,600
29.3
1. United States 12,926,177
2. China**
4,185,190
10.4
2.
Japan
3,931,051
13.3
2. Japan
2,495,757
9.7
3. Japan
3,114,543
7.7
3.
Euronext*
2,208,083
7.5
3. U.K.
2,372,738
9.2
4. Euronext*
2,213,188
5.5
4. Germany
2,144,493
7.2
4. Euronext*
1,903,278
7.4
5. India
2,127,580
5.3
5. U.K.
1,423,379
4.8
5. Germany
1,093,962
4.3
6. Germany
1,930,148
4.8
6. China**
1,111,543
3.8
6. Switzerland
689,199
2.7
7. U.K.
1,413,974
3.5
7.
Italy
1,196,631
4.0
7. China**
579,,427
2.3
8. Italy
1,333,139
3.3
8.
Spain
588,011
2.0
8. Italy
569,732
2.2
9. Brazil
1,140,947
2.8
9.
Canada
606,909
2.1
9. Canada
547,841
2.1
865,820
2.1
10. India
413,825
1.4
402,163
1.6
11,732,128
29.2
6,256,091
21.1
Rest of World 2,102,897
8.2
10. Russia Rest of World
Rest of World
(171 Countries)
* Euronext includes Belgium, France, Netherlands, and Portugal. ** China includes China and Hong Kong. *** India includes National Stock Exchange of India and Mumbai Exchange. Source: World Bank Data 2004, World Federation of Stock Exchanges, and Cumberland Advisors. Š Cumberland Advisors.
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 9
10. Spain (36 exchanges)
50.3
Three Ways to View The World 2004 PPP ($mm)
2004 GDP ($mm)
World’s 10 Largest Stock Markets ($mm) Measured in USD at 3/31/06 exchange rates
World Total
55,938,191
%
World Total
40,887,837
%
11,628,083
20.8
1.
United States
11,667,515
28.5
1. United States 17,941,481
40.4
2. China**
7,334,392
13.1
2.
Japan
4,623,398
11.3
2. Japan
4,774,550
10.8
3. Japan
3,774,086
6.7
3.
Euronext*
3,097,953
7.6
3. U.K.
3,253,372
7.3
4. India
3,362,960
6.0
4. Germany
2,714,418
6.6
4. Euronext*
3,115,780
7.0
5. Euronext*
2,793,365
5.0
5. U.K.
2,140,898
5.2
5.
China**
1,654,242
3.7
6. Germany
2,325,828
4.2
6. China**
1,812,334
4.4
6.
Canada
1,620,894
3.7
7. U.K.
1,832,252
3.3
7.
Italy
1,672,302
4.1
7. Germany
1,399,555
3.2
8. Italy
1,621,372
2.9
8.
Spain
991,442
2.4
8. India***
1,309,411
3.0
9. Brazil
1,482,859
2.7
9.
Canada
979,764
2.4
9. Spain
1,094,120
2.5
10. Russia
1,408,603
2.5
10. India
691,876
1.7
1,015,937
2.3
17,238,142
31.0
9,816,263
24.0
Rest of World 7,205,069
16.2
1. United States
Rest of World
Rest of World
(171 Countries)
* Euronext includes Belgium, France, Netherlands, and Portugal. ** China includes China and Hong Kong. *** India includes National Stock Exchange of India and Mumbai Exchange. Source: World Bank Data 2004, World Federation of Stock Exchanges, and Cumberland Advisors. Š Cumberland Advisors.
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 10
World Total 44,384,409
10. Switzerland (36 exchanges)
%
World Measured by Purchasing Power Parity (PPP) 1998 (Total $40.219 trillion)
China 10.4%
India Japan Euronext 5.3% 7.7% 5.5%
United States 21.5%
2004 (Total $55.938 trillion)
China 13.1%
Germany 4.8% U.K. 3.5% Italy 3.3% Brazil 2.8% Russia 2.2%
India 6.0%
Euronext 5.0% Germany 4.2% U.K. Italy 3.3% 2.9% Brazil 2.7%
United States 20.8%
Rest of World 29.2%
Russia 2.5%
Rest of World 31.0%
Source: World Federation of Stock Exchanges, World Bank Data 2004, and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Japan 6.7%
Chart 11
World Measured by Gross Domestic Product (GDP) 1998 (Total $29.633 trillion)
2004 (Total $40.888 trillion) Japan 11.3%
Japan 13.3%
Euronext 7.5% Germany 7.2% U.K. 4.8% China 3.8% Italy 4.0% Spain 2.0%
United States 29.3%
Rest of World 21.1%
India 1.4%
U.K. 5.2% China 4.4% Italy 4.1%
United States 28.5%
Spain 2.4% Canada 2.4%
Canada 2.0%
Rest of World 24.0%
Source: World Federation of Stock Exchanges, World Bank Data 2004, and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Euronext 7.6% Germany 6.6%
Chart 12
India 1.7%
World Measured by Stock Market Capitalization 1998 (Total $25.683 trillion)
2004 (Total $37.168 trillion) Japan 9.6%
Japan 9.7%
U.K. 9.2%
Euronext Germany 7.4% 4.3% Sw itzerland 2.7% China 2.3%
United States 50.3%
Italy 2.2% Canada 2.1% Spain 1.6% Rest of World 8.2%
Euronext 6.6% Canada 3.2% China 3.5%
United States 43.9%
Germany 3.2%
Rest of World 15.6%
Source: World Federation of Stock Exchanges, World Bank Data 2004, and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
U.K. 7.7%
Chart 13
India 2.0% Spain Sw itzerland 2.5% 2.2%
Look What Has Happened Since 2004 2004 (Total $37.168 trillion)
Japan 9.6%
Mar. 2006 (Total $44.384 trillion) Japan 10.8%
U.K. 7.7%
U.K. 7.3%
Euronext 6.6% Canada 3.2% China 3.5%
United States 43.9%
Canada 3.7% China
United States 40.4%
3.7% Germany 3.2%
Germany 3.2%
Rest of World 15.6%
India 2.0% Spain Sw itzerland 2.5% 2.2%
Rest of World 16.2%
Source: World Federation of Stock Exchanges, World Bank Data 2004, and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 14
Euronext 7.0%
India 3.0% Spain Sw itzerland 2.5% 2.3%
Share of World Stock Market Value 100% 90% 80%
1998 marks end of the LTCM crisis
Rest of World
70% 60%
1998 ROW 49.7%
Mar. 2006 ROW 59.6%
50% 40%
1998 U.S. 50.3%
US Share Shrinking
Mar. 2006 U.S. 40.4%
30%
U.S.
20% 10% 0% 1998
1999
2000
2001
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 15
2002
2003
2004
2005
Share of World Stock Market Value 1998 (Total $25.683 trillion)
Europe 30.6%
Mar. 2006 (Total $44.384 trillion) Europe 28.1%
Latin America 1.4%
Latin America 2.5% Other 2.6%
Other 0.7%
Asia 14.9% Canada 2.1%
Asia 22.8%
U.S. 40.4%
U.S. 50.3%
Canada 3.7% Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 16
Share of World Stock Market Value: Japan Mar. 2006 (Total $44.384 trillion)
1998 (Total $25.683 trillion) Japan 10.8% $4,774.5 Bn
Japan 10% $2,495.8 Bn
US US 40.4% 43.0%
US 50%
ROW 53.5% ROW 48.8%
ROW 40%
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 17
Share of World Stock Market Value: China Mar. 2006 (Total $44.384 trillion)
1998 (Total $25.683 trillion) China 3.7% $1,654.2 Bn
China 2.3% $579.4 Bn
US 40.4% ROW 47.4%
US 50.3%
ROW 55.8%
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 18
Share of World Stock Market Value: India 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) India 3.0% $1,309.4 Bn
India 0% $0.0 Bn
US 40.4% US 43.0%
US 50% ROW 50%
ROW ROW 53.5% 56.6%
India was not a member of the World Federation of Stock Exchanges until 2002. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 19
Share of World Stock Market Value: Other Asia, Middle East & Africa Indonesia, Iran, Israel, Korea, Malaysia, Philippines, Sri Lanka, Taiwan, Thailand, Turkey, Singapore, South Africa, Mauritius, Egypt 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) Other Asia, ME Africa 7.0% $3,108.2 Bn
Other Asia, ME, Africa 3.1% $798.1 Mm ROW 47%
US 50% ROW 52.6%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
US 40.4%
Chart 20
Share of World Stock Market Value: 25 European Union (EU) Members Mar. 2006 (Total $44.384 trillion)
1998 (Total $25.683 trillion) 25 EU Members 25.6% $11,346.7 Bn
25 EU Members 28% $7,118.4 Bn
US 50%
ROW 53.5%
ROW 22%
ROW 34.0%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 21
US 43.0% US 40.4%
Share of World Stock Market Value: Original 11 European Monetary Union (EMU) Members 1998 (Total $25.683 trillion)
11 EMU Members 15.4% $6,843.1 Bn
11 EMU Members 17% $4,264.5 Bn
ROW 33%
Mar. 2006 (Total $44.384 trillion)
ROW 53.5% ROW 44.2%
US 50%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 22
US US 43.0% 40.4%
Share of World Stock Market Value: United Kingdom 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) U.K. 7.3% $3,253.4 Bn
U.K. 9% $2,372.7 Bn
US 40.4% US
US 51%
43.0% ROW 53.5% ROW 52.2%
ROW 40%
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 23
Share of World Stock Market Value: Germany 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) Germany 3.2% $1,399.6 Bn
Germany 4.3% $1,093.9 Bn
US 40.4% US 43.0%
US 50.3% ROWROW 53.5% 56.4%
ROW 45.4%
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 24
Share of World Stock Market Value: Switzerland 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) Switzerland 2.3% $1,015.9 Bn
Switzerland 2.7% $689.1 Mm US 50.3%
ROW ROW 57.3% 53.5%
ROW 47%
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 25
US US 40.4% 43.0%
Share of World Stock Market Value: Euronext (France, Portugal, Belgium, Netherlands) Mar. 2006 (Total $44.384 trillion)
1998 (Total $25.683 trillion) Euronext 7.0% $3,115.8 Bn
France, Portugal, Belgium, Netherlands
7% $1,903.3 Bn
ROW 43%
US US 40.4% 43.0%
US 50%
ROW ROW 53.5% 52.6%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 26
Share of World Stock Market Value: Norway Mar. 2006 (Total $44.384 trillion)
1998 (Total $25.683 trillion) Norway 0.5% $238.4 Mm
Norway 0.2% $46.3 Mm
US 40.4% US 43.0%
US 50.3% ROW 53.5%ROW 59.0%
ROW 49.5%
Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 27
Share of World Stock Market Value: Other Europe (OMX) Denmark, Finland, Sweden, Estonia, Latvia, Lithuania Mar. 2006 (Total $44.384 trillion)
1998 (Total $25.683 trillion) Other Europe 2.1% $532.4 Mm
OMX Exchanges 2.1% $917.7 Mm
ROW 47.6%
US 40.4% US 43.0%
US 50.3%
ROW ROW 53.5% 57.5%
Lithuania ESTONIA and Latvia are not included in 1998. Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 28
Share of World Stock Market Value: Central Europe Poland, Hungary, Slovenia (Czech Republic and Slovakia do not report to the WFE.) 1998 (Total $25.683 trillion) Central Europe 0.1% $23.4 Mm
Mar. 2006 (Total $44.384 trillion) Central Europe 0.3% $147.8 Mm US 40.4% US
US 50%
43.0% ROWROW 53.5% 59.2%
ROW 49%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges (WFE) and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 29
Share of World Stock Market Value: Australia, New Zealand 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) Australia, NZ 2.0% $893.5 Mm
Australia, NZ 1.4% $353.4 Mm
ROW 48.3%
US 40.4% US 43.0%
US 50.3%
ROW 53.5% ROW 57.6%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 30
Share of World Stock Market Value: Latin America Argentina, Brazil, Chile, Colombia, Peru, Mexico 1998 (Total $25.683 trillion)
Mar. 2006 (Total $44.384 trillion) Latin America 2.5% $1,106.4 Mm
Latin America 1% $359.7 Mm
ROW 49%
US 40.4% US 43.0%
US 51%
ROW 53.5% ROW 57.1%
Note: See appendix at the end of this presentation for chart details. Source: World Federation of Stock Exchanges and Cumberland Advisors. Š Cumberland Advisors
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 31
Conclusion • Global economic / financial dialogue expanding • Money is leaving the U.S. for foreign markets • Risk premiums are low • Watch out for shocks • Terrorism • Nuclear • Bird Flu • Protectionism 614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Chart 32
Appendix: Data Tables for Pie Charts (USD Bn) Chart Page 11 – World 1998
1998
03/2006
12926177
17941481
U.S.
547841
1620894
ROW
Asia
3785465
10099792
Europe
7853892
12481332
U.S. Canada
Latin America Other
359700 210096
1106435 1134475
Indonesia
Chart Page 17 – 11 EMU Members U.S. ROW
12926177
03/2006 17941481
17941481
12926177
17941481
12109540
23334746
ROW
5638574
15096272
647454
100204
12926177
11115
33660
39230
132338
Korea
114593
751687
Malaysia
95561
195397
Philippines
34911
45363
1705
6710
260498
Thailand Turkey Singapore
Denmark / OMX
98881
917774
2372738
3253372
Sweden
278708
OMX
Slovenia
2985
8192
20461
104855
603182
Euronext
UK
Poland Netherlands Greece
80126
169827
Belgium
245657
Euronext
490433
Germany
1093962
1399555
135276 176561
Finland
154833
OMX
66593
127498
96472
293961
Italy
150670
665626
34118 33646
Ireland
8492473
19599851
Netherlands
603182
Euronext
South Africa
Belgium
245657
Euronext
Mauritius
Germany
1093962
1399555
154833
917774
66593
127498
Cyprus
569732
896506
Hungary
Portugal
62954
Euronext
Malta
Luxembourg
38182
59115
Finland / OMX Ireland Italy
France
991484
Euronext
Spain
402163
1094120
35779
150505
Austria Euronext
3115780
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
03/2006
U.S.
Israel
Taiwan
1998
03/2006
Iran
Sri Lanka 1998
Chart Page 16 – 25 EU Members
Chart Page 12 – Other Asia
2747
Egypt
78221
Portugal Luxembourg
896506
62954
Euronext
38182
59115
France
991484
Euronext
Spain
402163
1094120
Austria
35779
150505
Euronext
Note: Euronext includes Belgium, France, Netherlands and Portugal. OMX Exchanges include Denmark, Finland, Sweden, Estonia, Lithuania, and Latvia.
Chart 33
569732
9355 34718.9 5487 3115780
Appendix: Data Tables - Pie Charts (USD Bn) Chart Page 22 – Euronext 1998
Chart Page 24 – Central Europe
Chart Page 23 – Other Europe
03/2006
1998
03/2006
U.S.
12926177
17941481
U.S.
12926177
17941481
US
12926177
17941481
ROW
10853717
23327148
ROW
11130611
25525155
ROW
12697769
26295163
2985
8192
20461
104855
France
991484
Euronext
Denmark
Portugal
62954
Euronext
Belgium
245657
Netherlands
603182
1998
98881
OMX
Finland
154833
Slovenia
OMX
Euronext
Sweden
278708
OMX
Slovakia
Euronext
OMX Exchanges
Euronext
917774
3115780
Poland Hungary Czech Rep.
Chart Page 27 – Latin America 1998
03/2006
U.S.
12926177
17941481
ROW
12397295
25336496
Argentina
45333
46962
Brazil
160886
583354
Chile
51866
143251
Colombia Peru Mexico
57948 9869
23310
91746
251611
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Note: Euronext includes Belgium, France, Netherlands and Portugal. OMX Exchanges include Denmark, Finland, Sweden, Lithuania, and Latvia.
Chart 34
03/2006
34719
About Cumberland Advisors Cumberland Advisors supervises approximately $820 million in separate account assets for individuals, institutions, retirement plans, government entities, and cash management portfolios. Cumberland manages portfolios for clients in 39 states, the District of Columbia, and in countries outside the U.S. Cumberland Advisors is an SEC registered investment adviser. Munis, Taxables, ETFs Cumberland’s portfolio management efforts emphasize long lasting relationships and continuous dialogue among clients, their consultants, tax advisors, accountants, estate planners and their assigned portfolio management contact at Cumberland. Cumberland offers several different investment portfolio management styles. Our investment strategy is described in detail on our web site. Fixed Income All of our fixed-income offerings are total return strategies, but can take the client’s current income needs into consideration. Our fixed income styles are Tax-Free Municipal Bonds, Taxable Bonds, Tax-Free Tobacco Bonds, and Short Term Investment Program. Stocks Cumberland uses Exchange-Traded Funds to manage global equities. Exchange-Traded Funds (ETFs) are securities that mimic the price performance and dividend yield of an index, or a basket, of securities. Cumberland uses ETFs as building blocks in crafting a portfolio, investing in attractive equity sectors, industries, market capitalization strata, styles and regions. Our equity portfolios are U.S. Exchange-Traded Funds (ETF) Equity, International Exchange-Traded Funds (ETF) Equity, Emerging Markets Exchange Traded Funds, and Global Multi-Asset Class Exchange Traded Funds. Balanced Accounts Cumberland can blend the strategies presented above to create a balanced mix of stocks and bonds. For further information about Cumberland Advisors, please visit our website at www.cumber.com.
614 Landis Avenue, Vineland, NJ 08360 800-257-7013 www.cumber.com
Seated (L to R): Maribel Echevarria, VP of Trading; Terri Pantalione, VP of Compliance; Daisy Lopez, VP of Operations. Standing (L to R): David Kotok, Chairman and Chief Investment Officer; John Mousseau, CFA, VP and Portfolio Manager; Matthew Forester, VP and Portfolio Manager; Bill Witherell, VP and Chief Global Economist; Sam Santiago, VP of Information Technology; Peter Demirali, VP and Portfolio Manager. Donna Sooy, VP of New Accounts, not pictured.
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