fund in registration: T. Rowe Price Emerging Markets Value Fund

David_Snowball

http://www.sec.gov/Archives/edgar/data/313212/000031321215000150/485a.htm

Launches at the end of August. The manager hasn't really run a fund before, but has been managing some sort of TRP portfolio for the past five years.

Not a terribly informative prospectus, though perhaps an interesting idea. There are four or five open-end funds that bear the "emerging market value" label, mostly so-so or weaker. Andrew Foster made the interesting argument a while ago that value investing mostly didn't work in the emerging markets because there was, in a world of interlocking directorships and chaebols, such a limited prospect for value ever to be unlocked. Andrew suspected that the EM were maturing enough that corporations might feel more inclined to be responsive to shareholders, which might usher in an era of successful EM value investing.

For what interest that holds,

David

Ted

@MFO Members: Emerging Markets=Value, isn't this an oxymoron ?
Regards,
Ted

heezsafe

@Ted Yeah, exactly the same notion I've been mulling over since reading the announcement. I wasn't aware that EMs, as a whole, had matured to the point where individual stocks could be thrown into one camp or another. We should get a first peak at the portfolio circa Xmas. It will be interesting to give it some "strict scrutiny" then and see what results.

Vert

Looking at the usual metrics, emerging markets count as the world's value stocks. Similarly, you'll find most of the world's lowest valued stocks among international small caps. Presumably the Price fund will be the valuey part of emerging markets in particular.