Fin301

Non U.S. Equities

The stocks we are investing 19 percent of our money in are JBJAX and EMGCX. The reason for us investing in these two stocks are the positions they hold in the Morningstar JBJAX has a 3 out of 5 rating and EMGCX has a 5 out of 5 rating. So by looking at these stocks we are in a good position to come out of it in a positive way. To further break down where we will be investing the 19 percent of the $1,900 and why, 15 percent or 1,500 will be going into JBJAX just for the simple fact in each investment category Morgan Stanley is in the top 50 percentile. Then 4 percent or 400 we will be investing in EMGCX.

But investing in these two stocks we don't want to put all our money in one basket like Morgan Stanley and added a percentage of the 1,900 to Evergreen Emerging Markets and with the growth being made in other countries we did not feel we should have all our money in US stock. JBJAX has a NAV (net asset value) of $9.37 per share and EMGCX NAV is $16.25 per share. Just by looking at The NAV of these two stocks it seem like pretty good stock to invest money into with the return percentages being among the best. EMGCX has an above average 3 year Morningstar rating with below average risk, so that shows in the short term the return vs. risk rate is very high and the 5 year Morningstar return rating is high with the risk being low so that shows some of the stability of EMGCX stock.

EMGCX as of November of 2009 had a 66.10% total return percentage. JBJAX as of November 2009 had a total return of 25.89 percent. So based on the value of these stocks Evergreen is an emerging market with great return that’s why we choose to invest in that foreign market and not just put the total amount of our money in US stock.

Both stocks are fixed income stocks so the terms of these are 3 to 10 years but we are able to hold these stocks much longer because of the fact there open end mutual funds. EMGCX asset allocation is 88.56% stocks which is a huge amount this...