HBL holds a basket of 15 of the world's best brand name companies, in approximately equal weights:
3M Company (7.3%)
The Walt Disney Company (7.2%)
Siemens AG SPONS ADR (7.1%)
American Express Company (7.1%)
International Business Machines Corporation (6.9%)
Intel Corporation (6.9%)
Microsoft Corporation (6.8%)
Apple Inc. (6.8%)
The Coca-Cola Company (6.8%)
Caterpillar Inc. (6.6%)
Anheuser-Busch Inbev SPN ADR (6.6%)
Royal Dutch Shell PLC ADR, Class A (6.5%)
HSBC Holdings PLC SPONS ADR (6.3%)
Kellogg Company (6.0%)
United Parcel Service, Inc., Class B (5.5%)
Since Jan 31/14, I calculate that a basket of these stocks have increased in value by 5.6%. During the same period, the market price of HBL.UN has increased in value by 1.6%.
A compounding factor in the comparison of these two performances is currency exchange, as most of these trade in the US. However, the US dollar has depreciated about 1% (from $1.1127 to $1.0958) during that time which should be positive for fund performance.
The fund has a $0.065 monthly distribution, which would be a drag on share price. But this doesn't totally explain why the HBL.UN price has not maintained the same performance as its holdings.
Any ideas anyone?
R