Emerging Markets

willmatt72

I've seen quite a few recommendations to buy emerging markets based on this latest correction. Currently, I devote about 15% of my international holdings to emerging markets, with the bulk from SFGIX, MIOPX and PRGTX. I would consider myself a fairly conservative investor with a 10+ horizon for investing. What do you consider a sufficient allocation to emerging markets in an aggressive, moderate and conservative portfolio?

willmatt72

bumped up

Ted

@willmatt72: FYI: Scroll and read, "Plotting a Course for Emerging Markets"
Regards,
Ted
A=15%
M=10%
C=5%

Old_Skeet

Hi @willmat72,

Now in retirement, I consider myself a low moderate risk taker. I use to be a more aggressive investor and carry a higher allocation to stocks (60% to 70%) now 40% to 55%. My emerging market holdings account for about 25% of my foreign equity holdings. For me, the emerging market allocation (overall portfolio) for an aggressive investor would be 10% to 15% ... a moderate investor would range from 5% to 10% and a conserative investor would be from 0% to 5%. With this, I fall in the moderate range.

Old_Skeet

MikeM

@willmat72, you may have much less EM in your portfolio than the 15% you stated. None of the 3 funds you listed are full-in EM funds like an index EM fund would be. There is a lot of developed, bonds and cash in that 3-some total.

For example, it looks like the TRP fund has about 6% of it's assets in EM equities. SFGIX about 51% and MIOPX about 27%. If you hold all those funds at about the same weight of that 15% you are calling EM funds in the total portfolio, that's only about 28% EM equities in those 3 funds.

15% (what you call EM funds in your portfolio) x 28% (actual EM equities in your 3 funds) comes out to about 4% EM equities in your total portfolio.

I may not have explained it well, but you may only have about 4% EM equities in your total portfolio (if I did the math right). I don't know if that's a good thing or a bad thing. Appears you are closer to the conservative % Ted points out.

Edit: do a M* instant xray of all your funds to find out for sure if you think you need to be exact.

Crash

I'm at 11%, and will be adding to SFGIX. Or you could go with the Matthews shop, which restricts itself to Asia. Lots to choose from, over there. You may have better luck with shareholder services than I did. I pulled the plug with Matthews several years ago. But you'll have to do some real looking. For example, their MAPIX holds a lot in DEVELOPED Asia, by now. MACSX also holds instruments for current income, as well as growth.

davfor

I am a young "oldster" who is content with 8% of my total portfolio in EM. (EM holdings total about 35% of my international stocks.) You might take a look at MEASX if you are comfortable with owning funds that don't closely track indexes. Its close to 100% EM.

willmatt72

MikeM said:

@willmat72, you may have much less EM in your portfolio than the 15% you stated. None of the 3 funds you listed are full-in EM funds like an index EM fund would be. There is a lot of developed, bonds and cash in that 3-some total.

For example, it looks like the TRP fund has about 6% of it's assets in EM equities. SFGIX about 51% and MIOPX about 27%. If you hold all those funds at about the same weight of that 15% you are calling EM funds in the total portfolio, that's only about 28% EM equities in those 3 funds.

15% (what you call EM funds in your portfolio) x 28% (actual EM equities in your 3 funds) comes out to about 4% EM equities in your total portfolio.

I may not have explained it well, but you may only have about 4% EM equities in your total portfolio (if I did the math right). I don't know if that's a good thing or a bad thing. Appears you are closer to the conservative % Ted points out.

Edit: do a M* instant xray of all your funds to find out for sure if you think you need to be exact.

HI Mike,

Thanks for the detail and insight. I had my portfolio screened through Personal Capital, the online/robo advisor. Their software determined that my international holdings consist of about 15% EM. Of that, most was derived from SFGIX with lesser amounts from MIOPX and PRGTX. Bear in mind that I'm increasing my exposure to the latter two funds during 2018 so that number may increase a bit. If you compare EM with my entire portfolio, it's probably less than 5%. So, your numbers seems to make sense with regard to my total portfolio.