Systematic Relative Strength

The Investment Company Institute is the national association of U.S. investment companies, including mutual funds, closed-end funds, exchange-traded funds (ETFs), and unit investment trusts (UITs). Members of ICI manage total assets of $11.82 trillion and serve nearly 90 million shareholders. Flow estimates are derived from data collected covering more than 95 percent of industry assets and are adjusted to represent industry totals.

Taxable bond, hybrid, domestic equity, and foreign equity funds have all had strong positive flows so far in 2011. However, investors continue to flee municipal bond funds.

Although U.S. investors often focus on U.S.-based companies because of greater familiarity, I suspect that many would be interested in learning more about international companies that trade on U.S. exchanges in the form of American Depository Receipts (ADRs). The top ten performing ADRs over the past 12 months, out of our universe, are shown in the table below. As of 2/9/2011.

To learn more about Dorsey Wright’s Systematic Relative Strength International portfolio, click here.

Dorsey Wright’s ADR universe is a sub-set of the entire universe of ADRs. Dorsey Wright currently owns AMRN, BIDU, GENT, GGAL, SPRD. A list of all holdings for this portfolio over the past 12 months is available upon request.

How different investments have done over the past 12 months, 6 months, and month.

¹PowerShares DB Gold, ²iShares MSCI Emerging Markets ETF, ³iShares DJ U.S. Real Estate Index, ⁴iShares S&P Europe 350 Index, ⁵Green Haven Continuous Commodity Index, ⁶iBoxx High Yield Corporate Bond Fund, ⁷JP Morgan Emerging Markets Bond Fund, ⁸PowerShares DB US Dollar Index, ⁹iBoxx Investment Grade Corporate Bond Fund, ¹⁰PowerShares DB Oil, ¹¹iShares Barclays 20+ Year Treasury Bond