Bluestar-Israel-Quarterly-Update-Q2

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Bluestar-Israel-Quarterly-Update-Q2 BlueStar Israel Equity Update Second Quarter 2013 Q1 2013 in Review & 2013 Outlook What’s Inside Global developed market equities gained in Q1 continuing 2012’s market rally. The BlueStar Israel Global Index (BIGI) started 2013 off with a first quarter gain of 7.61% , underperforming the S&P 500, which gained 10.61% and hit record highs in late March and early April. Israeli Global Equities did outperform other 1. The developed market equities as the ACWI and EAFE indexes gained 6.61 and BlueStar 5.25%, respectively. Emerging markets as measured by the MSCI EM Index lost 1.79%. Israel Global Index in Q1 Israel’s financial and oil & gas sectors continued to be among the leading Israeli Global Equities for the third consecutive quarter, but Israel’s health care stocks 2013 were the greatest gainers in Q1 2013. Many companies have chosen to delist from the Tel Aviv Stock Exchange in 2-4. About the response to “over regulation”; volume on the local exchange continues to be BlueStar Israel problematic. However, asset flows into Israeli mutual funds by both Israelis and foreigners picked up significantly in the first quarter of 2013. Global Index and Rocket attacks from Gaza resumed in Q1 and early Q2 2013 after a truce was reached following “Operation Pillar of Defense” in late 2012. Prime Minister Risk/Return Netanyahu and Turkish Prime Minister Erdogan made great strides in reviving the Data two regional powers’ alliance. There were no major breakthroughs in efforts to halt Iranian nuclear enrichment. Kim Jong Un of North Korea threatened to attack South Korean and U.S. targets with nuclear weapons. 5-8. Technical Analysis BIGI Performance 9. Israeli (BlueStar Israel Global Index, Jan 2010- March 2013) Sector 150 Highlights 140 130 10. Capital 120 Markets 110 100 11. Israeli Economic 90 Review 80 70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12. Geopolitical 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 Environment S&P 500 Index Level BIGI Index Level 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. Comparative Sector Weights Comparative Risk MSCI - FTSE Sector BIGI TA-25 TA-100 Q1 '13 1yr. 3yrs. 5yrs. 10yrs. 15yrs. Incept 1 EIS Israel Technology 25.9% 9.0% 6.4% 10.8% 9.8% ACWI 8.03% 12.52% 16.93% 21.35% 16.77% 17.00% 15.70% Health Care 24.4% 22.9% 48.2% 20.1% 23.1% EAFE 11.07% 15.95% 19.29% 23.22% 18.37% 17.94% 16.95% Financials 18.6% 32.2% 22.8% 29.6% 29.7% MSCI EM 6.06% 15.29% 21.12% 28.20% 24.08% 25.38% 23.96% Oil & Gas 9.3% 5.3% 2.1% 13.3% 10.7% S&P 500 6.69% 10.39% 15.01% 18.92% 14.82% 16.17% 15.07% Basic Materials 8.0% 14.9% 10.7% 12.9% 11.4% MSCI 6.02% 16.83% 20.86% 21.97% 19.89% 24.54% 24.20% Industrials 3.9% 3.8% 2.0% 2.4% 3.8% Israel Consumer Services 3.7% 1.1% 0.7% 0.0% 2.1% TA-100 7.28% 15.92% 20.50% 25.85% 23.01% 24.81% 24.73% Telecommunications 3.4% 6.8% 5.0% 8.8% 6.3% TA-25 7.96% 16.64% 20.88% 25.67% 23.18% 25.04% 24.74% Consumer Goods 2.0% 3.5% 1.7% 2.3% 2.7% BlueStar 0.58% 14.53% 20.54% 24.69% 21.69% Utilities 0.9% 0.6% 0.4% 0.0% 0.5% - - Source: BlueStar Global Investors LLC *Annualized Mar 31 2012 Inception Date: Dec. 1992 Source: BlueStar Global Investors LLC Mar 31 2012 Long- Term Returns Five Year Correlations MSCI Q1 '13 1yr. 3yrs. 5yrs. 10yrs. 15yrs. Incept 1 ACWI MSCI EM EAFE S&P 500 TA-100 TA-25 Israel ACWI 6.61% 11.16% 8.34% 2.63% 9.92% 4.55% 8.01% ACWI 1.00 EAFE 5.25% 11.81% 5.50% -0.39% 10.19% 4.19% 6.90% MSCI EM 094 1.00 MSCI EM -1.79% 2.09% 3.51% 1.35% 17.38% 8.67% 8.92% EAFE 0.98 0.93 1.00 S&P 500 10.61% 13.96% 12.67% 5.81% 8.53% 4.27% 8.96% S&P 500 0.97 0.87 0.92 1.00 MSCI 7.11% -5.32% -10.74% -2.02% 9.95% 6.25% 5.77% MSCI Israel 0.71 0.76 0.69 0.66 1.00 Israel TA-100 7.65% 8.71% -0.92% 2.99% 15.30% 8.91% 7.69% TA-100 0.83 0.86 0.80 0.79 0.86 1.00 TA-25 7.17% 12.26% 0.95% 3.95% 16.94% 9.44% 8.10% TA-25 0.85 0.87 0.82 0.80 0.86 0.99 1.00 BlueStar 7.61% 4.34% 0.36% 5.34% 17.25% - - BlueStar 0.86 0.87 0.84 0.80 0.88 0.98 0.97 *Annualized Inception Date: Dec. 1992 Source: BlueStar Global Investors LLC Source: BlueStar Global Investors LLC Mar 31 2012 Mar 31 2012 2 © 2013 BlueStar Global Investors, LLC These are not recommendations to buy or sell any security BlueStar Israel Global Index Constituents and Weights Index Weight as Index Weight as Company Name Ticker Exchange Company Name Ticker Exchange of Mar 31 2013 of Mar 31 2013 1 Teva Pharmaceutical Industries TEVA TASE 11.73% 48 888 Holdings Plc 888 LN 0.49% 2 Perrigo Co PRGO NASDAQ 8.62% 49 Ormat Technologies ORA NYSE 0.49% 3 Check Point Software (US) CHKP NASDAQ 6.13% 50 Syneron Medical Ltd ELOS NASDAQ 0.49% 4 Amdocs Ltd DOX NYSE 4.97% 51 Orbotech Ltd (US) ORBK NASDAQ 0.49% 5 Israel Chemical Corp ICL TASE 4.65% 52 Caesar Stone Sdot Yam Ltd CSTE NASDAQ 0.47% 6 Bank Hapoalim BM Reg POLI TASE 3.81% 53 Ceva Inc CEVA NASDAQ 0.45% 7 Bank Leumi Le-Israel BM LUMI TASE 3.80% 54 Delek Energy Systems Ltd DLEN TASE 0.45% 8 Israel Corp ILCO TASE 2.49% 55 Delek Automotive Systems Ltd DLEA TASE 0.44% 9 BEZEQ ISRAELI TELECOM CORP BEZQ TASE 2.31% 56 MELISRON Ltd. MLSR TASE 0.43% 10 VeriFone Systems Inc PAY NYSE 2.09% 57 Menorah Insurance Co Ltd 1 MMHD TASE 0.43% 11 Nice Systems Ltd NICE TASE 2.00% 58 Space-Communication Ltd. SCC TASE 0.43% 12 MELLANOX TECH MLNX NASDAQ 1.86% 59 ALLOT COMMUNICATIONS LTD ALLT NASDAQ 0.42% 13 Isramco Negev 2 LP ISRAp TASE 1.52% 60 Given Imaging Ltd GIVN NASDAQ 0.41% 14 Playtech PTEC LN 1.24% 61 Clal Industries CII TASE 0.41% 15 Electronics For Imaging EFII NASDAQ 1.23% 62 NITSBA Hldgs (1995) Ltd NTBA TASE 0.41% 16 Israel Discount Bank 0.1 DSCT TASE 1.23% 63 Ormat Industries ORMT TASE 0.41% 17 Mizrahi Tefahot Bank Ltd MZTF TASE 1.17% Rami64 Levi Chain Stores Hashikma Marketing RMLILtd. TASE 0.40% 18 Delek Group Ltd DLEKG TASE 1.13% 65 DSP Group DSPG NASDAQ 0.39% 19 Avner Oil & Gas Ltd LP AVNRp TASE 1.06% 66 Ituran Location & Control Ltd ITRN TASE 0.39% 20 Delek US Holdings DK NYSE 1.00% 67 Jerusalem Oil Exploration JOEL5 TASE 0.38% 21 Azrieli Group AZRG TASE 0.98% 68 Nova Measuring Instruments Ltd NVMI TASE 0.38% 22 Gazit Globe 1982 Ltd GLOB TASE 0.96% 69 PROLOR Biotech Inc. PBTH NYSE 0.37% 23 Elbit Systems Ltd ESLT TASE 0.94% 70 AMOT Investment Ltd AMOT TASE 0.37% 24 Taro Pharmaceutical Industries TARO NYSE 0.93% 71 Electra (Israel) ELTR TASE 0.37% 25 VERINT SYSTEMS VRNT NASDAQ 0.92% 72 Naphtha Israel Petroleum Corp NFTA TASE 0.37% 26 SodaStream International Ltd SODA NASDAQ 0.91% 73 Shufersal Ltd. SAE TASE 0.37% 27 Delek Drilling LP DEDRp TASE 0.79% 74 Clicksoftware Technologies Ltd CKSW NASDAQ 0.36% 28 LivePerson Inc LPSN NASDAQ 0.77% 75 Israel Phoenix Assurance 1 PHOE1 TASE 0.36% 29 First Intl Bank of Israel FTIN TASE 0.72% 76 Gilat Satellite Networks GILT TASE 0.35% 30 Paz Oil Company Ltd PZOL TASE 0.72% 77 Kamada KMDA TASE 0.35% 31 Osem Investment OSEM TASE 0.71% 78 Africa Israel Properties AFPR TASE 0.34% 32 Imperva Inc IMPV NYSE 0.70% 79 Airport City Ltd ARPT TASE 0.34% 33 Harel Insurance Inv Ltd 1 HARL TASE 0.69% 80 Africa-Israel Inv Ltd AFIL01 TASE 0.34% 34 Ezchip Semiconduct EZCH TASE 0.66% 81 Avgol Industries 1953 Ltd AVGL TASE 0.32% 35 Radware Ltd RDWR NASDAQ 0.64% 82 Jerusalem Economic Corp (ECJ) ECJM TASE 0.31% 36 Migdal Insurance Hdlgs MGDL TASE 0.62% 83 Evogene Ltd.
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