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I am 77 years of age and still in good health. I would like to take a small position,10,000 dollars in my IRA in either an emerging market equity or bond fund. your suggestions are greatly appreciated as to the fund picks.. I want to thank everyone for Fundalarm and now the Observer. it has made me a much wisher mutual fund investor.
A rather "conservative" EM bond fund choice would be FNMIX - Fidelity EM Bond Fund. A more aggressive choice might be TGEIX. Check out both funds at Morningstar or Market Watch websites for more info.
PREMX TRP EM Bond has fallen from about $13.85 per share to the $13.30 range since last Fall. I own it. Seven cents per share dividend comes each MONTH, not quarterly. I like it for that reason, and my 403b money still goes there--- buying me more shares than before since the share price is down. On top of that, my div. is growing a tiny bit bigger each month, as well. It all works together. Take a look at it.
An emerging market bond fund I've been contemplating buying is the new fund from Doubleline DBLEX. Right now I'm happy with the international exposure I have through Loomis Sayles Bond, about 27% in foreign fixed income.
MikeM hit it in the head. I own DLENX/DBLEX; it is a very good fund and is on the "conservative" side for EMB funds. Its returns are solid, albeit it's only been around for a year+. But of course, the management has a VERY good track record!!
I think this fund is a wise choice for anyone, in particular, someone looking to dip-their-toe into the EM bond world!!
Tom Mitchell: Thank you for you advice.I have also been looking at two Wisdom Tree ETFs. DGS emerging market small cap dividend an ETF fund and their emerging market equity income ETF DEM. Both pay about a 3% dividend and when charted almost over lap. Any thoughts?
If you can access Templeton Global Bond Fund in a non-commission format, that would be worth a look for sure. Manager Michael Hasenstab has been a genius at handling foreign currencies. The fund is essentially all foreign government bonds. Another EM bond fund that has reasonable risk is Fidelity New Markets - long-time manager, which is rare at Fidelity.
EM stock funds clearly present higher risk. A way to play a sort of "chicken" EM selection might be Matthews Asia Dividend. It is not mostly EM (only currently about 30%), but it gets you into Asia. But we use it for our more conservative clients as their "EM" allocation. You will not participate in Latin America, Eastern Europe, etc., though.
Just wish it were a bit cheaper though. Perhaps will drop in fees over time.
Lazard also just recently came out with a similar EM stock/bond strategy fund....
"The Lazard Emerging Markets Multi-Strategy Portfolio (the “Portfolio”) seeks total return from current income and capital appreciation by allocating capital across Lazard’s emerging markets equity and debt strategies utilizing the portfolio management team’s assessment of the changing economic landscape. The allocations to the underlying strategies are changed over time, and at any given point the allocation to one strategy (other than currency investments) may comprise a substantial percentage of the Portfolio’s assets. The Team gauges the global economic environment through quantitative and qualitative analysis, including the use of proprietary software models and internal and external research. By combining equity with debt strategies and periodically readjusting allocations, the Portfolio seeks to avoid the extreme outcomes typically found in emerging markets and, thereby, to create a lower volatility pattern of returns"
--- But I don't know how good and how deep of an EM Fixed-Income investment team they have as I don't see much history of EM Fixed-Income investing from Lazard unless they do so in Private/Institutitional accounts.
So investors would have to evaluate the additional costs versus the active-management benefits of getting the hands-free EM stock/bond tactical/strategic balancing done for you.
Tom, if you have or want to have a brokerage account, my EM roll-your-own stock/bond blend is equal parts DEM and ELD, the WisdomTree equity income and local debt ETFs. Both are generally higher quality, & therefore lower volatility and risk than the average EM fund. For example, with today's losses in EM stocks, DEM is down half as much as the Vanguard index ETF VWO.
ELD is new this year, but DEM has a 3-year, 5-star track record.
Comments
I think this fund is a wise choice for anyone, in particular, someone looking to dip-their-toe into the EM bond world!!
PRMSX T. Rowe Price Emerging Markets Stock
PREMX T. Rowe Price Emerging Markets Bond
EM stock funds clearly present higher risk. A way to play a sort of "chicken" EM selection might be Matthews Asia Dividend. It is not mostly EM (only currently about 30%), but it gets you into Asia. But we use it for our more conservative clients as their "EM" allocation. You will not participate in Latin America, Eastern Europe, etc., though.
i also own lsbrx loomis sayles, and jaosx janus overseas
interesting read - Private equity investors find Brazil most attractive of emerging markets
http://www.pionline.com/apps/pbcs.dll/article?AID=/20110417/REG/110419932/1008/PITopicNewsletter11&template=PITopicNewsletter11&issuedate=20110421
Lazard also just recently came out with a similar EM stock/bond strategy fund....
"The Lazard Emerging Markets Multi-Strategy Portfolio (the “Portfolio”) seeks total return from current income and capital appreciation by allocating capital across Lazard’s emerging markets equity and debt strategies utilizing the portfolio management team’s assessment of the changing economic landscape. The allocations to the underlying strategies are changed over time, and at any given point the allocation to one strategy (other than currency investments) may comprise a substantial percentage of the Portfolio’s assets. The Team gauges the global economic environment through quantitative and qualitative analysis, including the use of proprietary software models and internal and external research. By combining equity with debt strategies and periodically readjusting allocations, the Portfolio seeks to avoid the extreme outcomes typically found in emerging markets and, thereby, to create a lower volatility pattern of returns"
--- But I don't know how good and how deep of an EM Fixed-Income investment team they have as I don't see much history of EM Fixed-Income investing from Lazard unless they do so in Private/Institutitional accounts.
So investors would have to evaluate the additional costs versus the active-management benefits of getting the hands-free EM stock/bond tactical/strategic balancing done for you.
ELD is new this year, but DEM has a 3-year, 5-star track record.