Bluestar Israel Quarterly Update Q3 2013 Final.Pptx
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BlueStar Israel Equity Update Third Quarter 2013 Q2 2013 in Review & Second Half 2013 Outlook What’s Inside Ø Global developed market equities pulled back slightly in Q2 2013 while U.S. stocks, as measured by the S&P 500 index, bucked the trend and posted a rise of 2.91%. Ø The BlueStar Israel Global Index was down by 95 bps in Q2 2013 while the MSCI Israel and TA-100 indexes were down 4.16% and 2.76%, respectively. 1. The BlueStar Ø Israeli consumer stocks, which are correlated with both domestic consumption as well as consumer spending in Israel’s export markets, lead Israeli Global Equities in Q2, while the Israel Global financial and energy stocks, which lead the Israeli Global Equity market’s rebound from the Index in Q1 2012 lows, consolidated. 2013 Ø The Israeli government decided on a 2013 and 2014 budget that will result in tax increases and spending cuts and the Shekel’s sharp appreciation versus the dollar and euro eased a bit. 2-5. About the Ø Mellanox Technologies announced it will delist its shares from the Tel Aviv Stock Exchange and the TASE’s bid to be included in MSCI’s European regional indexes was declined. Both BlueStar Israel events sparked concern about the future of the local exchange. Also, Israeli corporate Global Index pyramids come under attack by The Committee on Increasing Competitiveness in the Economy and the Business Concentration Law. (including Risk/ Ø The Energy sector is asserting itself as a major player in the Israeli economy, natural gas Return Data) reserve estimates and oil estimates are rising, and the government has decided upon an export strategy, clearing up uncertainty and removing some of the risk factors associated with investing in that sector. 6-10. Technical Analysis Ø The newly-elected Egyptian government was overthrown by the army and the civil war in Syria has spilled over into Lebanon and into the Golan on several occasions. The European Union passed a funding ban on organizations operating in the “occupied territories.” 11. Israeli Sector BIGI Performance Highlights (BlueStar Israel Global Index, Jan 2010- June 2013) 150 12. Capital 140 Markets 130 13. Israeli 120 110 Economic S&P 500 Index Level Review 100 BIGI Index Level 90 14. Geopolitical Environment 80 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 1 © 2013 BlueStar Global Investors, LLC These are not recommendations to buy or sell any security About the BlueStar Israel Global Index The BlueStar Israel Global Index (’BIGI’) provides a benchmark for investors to track the broadest and deepest universe of Israeli public companies. The index is constructed using BlueStar Indexes’ unique methodology and proprietary database of Israeli and Israel-linked companies. BIGI includes the largest and most liquid companies as well as mid and small cap companies that display sufficient liquidity for global investors. The index methodology allows for the inclusion of Israeli companies listed on the Tel Aviv Stock Exchange as well as other exchanges such as the London Stock Exchange, New York Stock Exchange, and NASDAQ. The BlueStar Israel Global Index has been created to provide investors with an investable product allowing them to quickly take advantage of both event-driven news and long-term economic trends as the economy and companies of Israel continue to evolve. Comparave Sector Weights Comparave Risk MSCI - FTSE YTD Sector BIGI TA-25 TA-100 1yr. 3yrs. 5yrs. 10yrs. 15yrs. Inception EIS Israel 6/28/13 Info. Technology 28.6% 10.5% 6.7% 11.9% 12.0% ACWI 9.18% 6.98% 15.85% 20.94% 16.55% 17.02% 15.63% Health Care 23.7% 23.4% 48.3% 20.6% 23.5% EAFE 13.14% 9.51% 18.30% 22.98% 18.20% 18.03% 16.91% Financials 19.5% 32.5% 21.8% 30.2% 30.9% MSCI EM 9.69% 11.45% 20.86% 27.78% 24.02% 25.00% 23.88% Energy 8.6% 4.4% 3.8% 12.6% 9.7% S&P 500 7.69% 6.74% 13.57% 18.42% 14.58% 16.15% 14.99% Materials 7.3% 13.1% 9.2% 11.2% 9.9% MSCI 8.05% 10.87% 19.58% 21.46% 18.93% 24.50% 24.07% Industrials 3.4% 4.8% 2.7% 2.4% 4.2% Israel Telecom Services 3.2% 6.9% 4.9% 8.6% 6.1% TA-100 8.20% 10.02% 19.15% 24.86% 21.92% 24.72% 24.59% Consumer Disc. 2.9% 0.6% 0.4% 0.0% 0.7% TA-25 8.72% 10.67% 19.71% 24.73% 22.09% 24.97% 24.61% Consumer Staples 2.3% 3.8% 2.2% 2.5% 3.1% BlueStar 5.57% 6.90% 19.05% 23.76% 20.35% - Utilities 0.5% 0.0% 0.0% 0.0% 0.0% - Source: BlueStar Global Investors LLC *Annualized June 30 2013 Incep?on Date: Dec. 1992 Source: BlueStar Global Investors LLC June 30 2013 Long- Term Returns Five Year Correlaons YTD MSCI 1yr. 3yrs. 5yrs. 10yrs. 15yrs. Inception ACWI MSCI EM EAFE S&P 500 TA-100 TA-25 6/28/13 Israel ACWI 1.00 ACWI 6.38% 17.21% 12.96% 2.86% 8.14% 4.48% 7.60% MSCI EM 0.94 1.00 EAFE 4.47% 19.14% 10.55% -0.16% 8.16% 4.06% 6.52% MSCI EM -9.40% 3.23% 3.72% -0.11% 14.02% 10.05% 8.04% EAFE 0.98 0.92 1.00 S&P 500 13.82% 20.60% 18.45% 7.01% 7.30% 4.24% 8.66% S&P 500 0.97 0.86 0.92 1.00 MSCI MSCI 2.65% 5.06% -5.84% -5.00% 5.87% 5.56% 5.27% 0.71 0.76 0.68 0.66 1.00 Israel Israel TA-100 4.68% 18.57% 4.82% -0.02% 10.84% 8.46% 7.16% TA-100 0.84 0.86 0.80 0.79 0.85 1.00 TA-25 2.92% 20.81% 6.05% 0.19% 12.28% 8.93% 7.48% TA-25 0.85 0.87 0.82 0.80 0.86 0.99 1.00 BlueStar 6.59% 18.68% 6.45% 2.63% 12.56% - BlueStar 0.86 0.87 0.83 0.81 0.88 0.98 0.97 - *Annualized Incep?on Date: Dec. 1992 Source: BlueStar Global Investors LLC Source: BlueStar Global Investors LLC June 30 2013 June 30 2013 2 © 2013 BlueStar Global Investors, LLC These are not recommendations to buy or sell any security BlueStar Israel Global Index Constuents and Weights Index Weight as Index Weight as Company Name Ticker Exchange Company Name Ticker Exchange of June 18 2013 of June 18 2013 1 TEVA PHARMACEUTICAL IND LTD TEVA TASE 12.50% 48 PROTALIX BIOTHERAPEUTICS INC PLX AMEX 0.47% 2 PERRIGO CO PRGO NASDAQ 8.51% 49 CEVA INC CEVA NASDAQ 0.45% 3 CHECK POINT SOFTWARE TECH CHKP NASDAQ 6.46% 50 OIL REFINERIES LTD ORL TASE 0.45% 4 AMDOCS LTD DOX NASDAQ 4.96% 51 ALLOT COMMUNICATIONS LTD ALLT NASDAQ 0.44% 5 ISRAEL CHEMICALS LTD ICL TASE 4.10% 52 DELEK AUTOMOTIVE SYSTEMS LTD DLEA TASE 0.43% 6 BANK HAPOALIM BM POLI TASE 4.04% 53 888 HOLDINGS PLC 888 LN 0.43% 7 BANK LEUMI LE-ISRAEL LUMI TASE 3.90% 54 DELEK ENERGY SYSTEMS LTD DLEN TASE 0.43% 8 STRATASYS LTD SSYS NASDAQ 2.27% 55 ORMAT INDUSTRIES LTD ORMT TASE 0.42% 9 VERIFONE SYSTEMS INC PAY NASDAQ 2.24% 56 GIVEN IMAGING LTD GIVN NASDAQ 0.41% 10 BEZEQ THE ISRAELI TELECOM CO BEZQ TASE 2.15% 57 RAMI LEVI CHAIN STORES HASHI RMLI TASE 0.41% 11 ISRAEL CORP LIMITED/THE ILCO TASE 2.07% 58 CLAL INDUSTRIES LTD CII TASE 0.41% 12 NIC E SYSTEMS LTD NIC E TASE 2.00% 59 PROLOR BIOTECH INC PBTH NASDAQ 0.40% 13 MELLANOX TECHNOLOGIES LTD MLNX NASDAQ 1.78% 60 SYNERON MEDICAL LTD ELOS NASDAQ 0.40% 14 VERINT SYSTEMS INC VRNT NASDAQ 1.60% 61 NITSBA HOLDINGS (1995) LTD NTBA TASE 0.40% 15 ISRAMCO NEGEV 2 LP ISRAL TASE 1.36% 62 SHUFERSAL LTD SAE TASE 0.37% 16 PLAYTECH PLC PTEC LN 1.25% 63 MELISRON MLSR TASE 0.37% 17 ISRAEL DISCOUNT BANK-A DSCT TASE 1.25% 64 MENORAH MIVTAC HIM HOLDINGS L MMHD TASE 0.37% 18 DELEK US HOLDINGS INC DK NYSE 1.24% 65 ITURAN LOCATION AND CONTROL ITRN TASE 0.35% 19 MIZRAHI TEFAHOT BANK LTD MZTF TASE 1.23% 66 CAESARSTONE SDOT-YAM LTD CSTE NASDAQ 0.35% 20 SODASTREAM INTERNATIONAL LTD SODA NASDAQ 1.11% 67 AMOT INVESTMENTS LTD AMOT TASE 0.35% 21 DELEK GROUP LTD DLEKG TASE 1.04% 68 JOEL-JERUSALEM OIL EXPLORATI JOEL TASE 0.34% 22 GAZIT GLOBE LTD GZT TASE 1.00% 69 COMPUGEN LTD CGEN NASDAQ 0.34% 23 ELBIT SYSTEMS LTD ESLT TASE 0.96% 70 KAMADA LTD KMDA TASE 0.34% 24 AVNER OIL EXPLORATION - LP AVNRL TASE 0.91% 71 PHOTOMEDEX INC PHMD NASDAQ 0.33% 25 AZRIELI GROUP AZRG TASE 0.88% 72 NOVA MEASURING INSTRUMENTS NVMI TASE 0.33% 26 TARO PHARMACEUTICAL INDUS TARO NYSE 0.87% 73 AFRICA-ISRAEL INV LTD AFIL TASE 0.33% 27 FIRST INTL BANK ISRAEL FTIN TASE 0.81% 28 EZCHIP SEMICONDUCTOR LTD EZCH TASE 0.79% 74 CLICKSOFTWARE TECHNOLOGIES CKSW NASDAQ 0.33% 29 PAZ OIL CO LTD PZOL TASE 0.74% 75 PHOENIX HOLDINGS LTD/THE PHOE1 TASE 0.32% 30 IMPERVA INC IMPV NYSE 0.73% 76 CINEMA CITY INTERNATIONAL NV CCI Warsaw 0.32% 31 OSEM INVESTMENTS LTD OSEM TASE 0.70% 77 GILAT SATELLITE NETWORKS LTD GILT TASE 0.31% 32 RADWARE LTD RDWR NASDAQ 0.64% 78 EVOGENE LTD EVGN TASE 0.31% 33 HAREL INSURANCE INVESTMENTS HARL TASE 0.63% 79 BABYLON LTD BBYL TASE 0.30% 34 DELEK DRILLIN - LP DEDRL TASE 0.62% 80 DSP GROUP INC DSPG NASDAQ 0.30% 35 STRAUSS GROUP LTD STRS TASE 0.61% 81 SILICOM LTD SILC NASDAQ 0.30% 36 RATIO OIL EXPLORATION RATIL TASE 0.61% 82 PLURISTEM THERAPEUTICS INC PSTI NASDAQ 0.30% 37 MIGDAL INSURANCE & FINANCIAL MGDL TASE 0.60% 83 AFRICA ISRAEL PROPERTIES LTD AFPR TASE 0.28% 38 FRUTAROM FRUT TASE 0.57% 84 BAYSIDE LAND CORP (1) BYSD TASE 0.28% 39 CELLCOM ISRAEL LTD CEL TASE 0.55% 85 KOOR INDUSTRIES LTD KOR TASE 0.27% 40 LIVEPERSON INC LPSN NASDAQ 0.54% 86 MAZOR ROBOTIC S LTD MZOR TASE 0.26% 41 PARTNER COMMUNICATIONS CO PTNR TASE 0.54% 87 AUDIOCODES LTD AUDC NASDAQ 0.26% 42 SHIKUN & BINUI LTD SKBN TASE 0.52% 88 JERUSALEM ECONOMY LTD ECJM TASE 0.26% 43 CLAL INSURANCE ENTERPR HLDGS CLIS TASE 0.52% 89 FIBI HOLDINGS FIBI TASE 0.26% 44 ALONY HETZ PROPERTIES & INV ALHE TASE 0.51% 90 BRAINSWAY LTD BRIN TASE 0.25% 45 ORBOTECH LTD ORBK NASDAQ 0.51% 91 CERAGON NETWORKS LTD CRNT NASDAQ 0.25% 46 ORMAT TECHNOLOGIES INC ORA NYSE 0.49% 92 DISCOUNT INVESTMENT CORP-REG DISI TASE 0.24% 47 ALON USA ENERGY INC ALJ NYSE 0.49% 93 GIVOT OLAM OIL EXPLORAT- LP GIVOL TASE 0.11% 3 © 2013 BlueStar Global Investors, LLC These are not recommendations to buy or sell any security June 2013 BlueStar Israel Global Index Rebalance Review BIGI Addi5ons Stratasys (SSYS:NASDAQ) 2.27% of BIGI Global Provider of three-dimensional prin?ng solu?ons including 3D printers, prin?ng resin and services.