Business overview: The cement industry
Cement is classified into various categories based on its composition and specific end uses. Cement is classified as either portland, blended, or specialty cement. Investors can access the cement industry through the Vanguard FTSE Emerging Markets ETF (VWO).
Must-know: Cement’s final manufacturing process
The blend is heated in a rotary kiln. Gas, oil, or pulverized coal are used to ignite the flame at one end of the kiln. The clinker from the kiln passes into a cooler, where convective airflow cools the clinker for subsequent handling and grinding.
Looking at the Portfolio of the Columbia European Equity Fund
The Columbia European Equity Fund (AXEAX) invested in 56 holdings in September 2016, and it was managing $449 million in assets.
A Look at FAIDX’s Year-to-Date Portfolio Changes
Fidelity Advisor International Discovery Fund overview The Fidelity Advisor International Discovery Fund (FAIDX) primarily invests in non-US securities and prefers common stocks for investing in equities. Its assets are spread across multiple regions. The fund’s management uses a fundamental analysis of factors such as an issuer’s financial condition and industry position, as well as market […]
Sector Composition of the Columbia European Equity Fund
The Columbia European Equity Fund Class A (AXEAX) invests in “equity securities of European companies that are believed to offer growth potential.”
Sector Composition Changes in AXEAX until 1Q16
AXEAX was invested across 69 holdings as of March 2016, seven more than a quarter ago. It was managing assets worth $515.6 million as of March.
Why Quantitative Metrics Don’t Favor AXEAX
From a purely NAV (net asset value) return standpoint, AXEAX was an above-average performer for the one-year period until March 15, 2016. It was placed fifth for the period among its peer group.
AXEAX: What Should We Be Concerned about in 2016?
Among its peer group, the Columbia European Equity Fund (AXEAX) is a comparatively smaller fund.
AXEAX’s Portfolio Holdings through November 2015
AXEAX was invested across 63 holdings as of November 2015, and it was managing assets worth $558.6 million.
How Materials Hurt the Europe-Focused AXEAX in September
The Columbia European Equity Fund Class A (AXEAX) fell by 3.8% in September 2015 from the previous month. AXEAX’s exposure to financials cost the fund.
Must-know: Factors that influence the cement industry
The cement industry is highly affected by regulatory norms. This is prominent in developed countries where environmental issues are more stringent. This adds to the companies’ costs.
Must-know: Cement industry drivers and indicators
An increased focus on infrastructure development increases cement demand. This effect is prominent in emerging economies. A substantial portion of this demand comes from infrastructure projects. The projects are funded by the government.
Must-know: The cost elements of cement
The cement industry relies on power. Power and fuel costs account for ~30% of the price of cement when it’s sold. As a result, power and fuel have a major impact on the company’s operating expenditure.
Must-know: Cement preparation
The company takes a sample of the limestone at various levels in the form of steps. The steps are called benches. The benches determine the quality assurance. Since quality varies, the bench compares it with the standard that’s required. This is called limestone benching.