Chile Prospers With Copper

Article Excerpt

CHILE FUND $17.25 (New York symbol CH) (CWA Rating: Aggressive) has net assets of $175.9 million U.S. It’s managed by Credit Suisse. Prices for copper, a key commodity for Chile, are down from their highs, but still remain strong. Chile is a major exporter of copper, particularly to Asia. It’s the world’s biggest supplier of copper. Other important non-mineral exports are forestry and wood products, fresh fruit and processed food, fishmeal and seafood, and wine. The Chilean economy grew 6.3% in 2005 and likely grew 4.2% in 2006. Steady interest rate increases since 2004 have kept inflation at under 3%, but the rate increases, plus higher energy prices, slowed the economy in 2006. Even so, growth this year will still likely exceed 5.5%. Chile Fund dropped to as low as $13.30 in June of 2006 as resource prices dipped. The shares have moved up since then. The fund is now trading at a discount to net assets of 4%. Chile Fund is a buy…

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