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Ping bobC, scott, rono:T Rowe Price Emerging Markets Local Currency fund (no symbol)
They have run quite a bit over the last couple of years, but emerging market bond funds - and especially EM bond funds denominated in local currency - are a good fixed-income bet over the longer term. EM Bonds can certainly be volatile (see how most performed in 2008) and again, I wouldn't pile in here for those who don't already have EM bond exposure, but would dollar cost average over time. I tend to recommend the TCW fund, for its ability to hold both EM corporate and EM sovereign (as well as management). The T Rowe fund says that it will be able to hold corporates as well, but not to what extent. Overall, I'd rather have a fund that has more flexibility to hold sovereigns and corporates than just sovereigns.
I'd compare it to merk's stuff - MEAFX or MABFX. MERKX is very close to PRPFX so it's not what you're looking for. Also, consider just buying currency ETF's. FXC or FXA for canada or australia. I think they've got them for many countries by now.
Lastly, you really want to keep stuff like this to a minimum in your portfolio - not the class, nor intention, but the specific fund. If you want to hedge against the dollar, do it with a barrage of funds - foreign currency, bonds, stocks, pm's, commodities and other real stuff.
I would never say that Price Funds is not a top-notch group. They may indeed have great experience in local currency trading. This fund, however, is pretty new. Low expenses and cautious management will be a plus. If you believe that local currencies will outperform the U.S. dollar over the long-term, some investment here might be prudent.
You might consider/compare this fund PRELX with other local currency funds from PIMCO, Goldman Sachs, and others. PIMCO's Developing Local Markets PLMDX has the longest history, but most are pretty new.
We have been using Goldman's Emerging Market Debt (GSDIX), but are moving some of those dollars to the Local EM Debt (GIMDX), because of our concern for the long-term outlook of the dollar. If we are wrong, it will only be a small part of the total client fixed-income allocation. But if we are right, it could boost returns a bit. We just want to have our bases covered. PRELX will be one to watch, for sure.
Comments
I'd compare it to merk's stuff - MEAFX or MABFX. MERKX is very close to PRPFX so it's not what you're looking for. Also, consider just buying currency ETF's. FXC or FXA for canada or australia. I think they've got them for many countries by now.
Lastly, you really want to keep stuff like this to a minimum in your portfolio - not the class, nor intention, but the specific fund. If you want to hedge against the dollar, do it with a barrage of funds - foreign currency, bonds, stocks, pm's, commodities and other real stuff.
good luck,
rono
You might consider/compare this fund PRELX with other local currency funds from PIMCO, Goldman Sachs, and others. PIMCO's Developing Local Markets PLMDX has the longest history, but most are pretty new.
We have been using Goldman's Emerging Market Debt (GSDIX), but are moving some of those dollars to the Local EM Debt (GIMDX), because of our concern for the long-term outlook of the dollar. If we are wrong, it will only be a small part of the total client fixed-income allocation. But if we are right, it could boost returns a bit. We just want to have our bases covered. PRELX will be one to watch, for sure.
Foreign Govt. 82.22
US Corporate 11.80
Foreign Corp. 5.98
US Treasury 0.00
TIPS 0.00