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You DID read what I wrote, correct? ARTYX seems to have 35% US and is large cap growth. FSEAX is at least mostly foreign, but ALSO large cap growth. All per M*. If that is correct, then MATFX, with 100% Asian large cap growth, should be in there with those two. At least I can't see a huge difference. If I'm missing something, then please point it out to me.
Great discussion here. I bought MATFX 2 weeks ago. I really like the manager of this fund, Michael J. Oh, who has been lead manager of the fund since 2006. He writes some great commentary pieces that lay out his thinking on stock selection and where he sees opportunities. https://www.matthewsasia.com/funds/asia-growth/asia-innovators-fund/ . Scroll to the bottom for links to articles and podcast. Wonderful track record. With this I now hold FSEAX, CHIQ in emerging Asia. I also own MIOPX which is about 35% emerging Asia. MIOPX is probably my favorite fund of the lot because it is international in its focus. If you look at its performance for just about any time frame on Morningstar or MFO Premium it's in the top 10%. Finally, I own Hennessy Japan which is a nice steady eddy fund that gives you good exposure for a global rebound in the economy.
I also own MIOPX which is about 35% emerging Asia. MIOPX is probably my favorite fund of the lot because it is international in its focus. If you look at its performance for just about any time frame on Morningstar or MFO Premium it's in the top 10%. Finally, I own Hennessy Japan which is a nice steady eddy fund that gives you good exposure for a global rebound in the economy.
the major difference is in portfolio construction. MFAPX is heavy in developed Europe -- at over 50% concentration. MIOPX is only 33% developed Europe and 35% in emerging markets (mainly developing Asia). MIOPX is riskier fund because of these allocations but also higher returns. There is some overlap in the companies that they both hold. They are both growth oriented funds managed by Kristian Heugh.
See @TheShadow’s posting today about Matthews combining Emerging Asia and Asia Small Companies to create a SCEM fund with world-wide coverage. This discussion has pointed out that there are not many such funds extant. Others can let us know what’s going on behind the scenes at Matthews.
Thanks for putting up those figures, @JonGaltill. I got caught with ARTYX.
Strangely, WAEMX, (Wasatch EM SC Fund) holds, according to M*, only 8.72% in SC and MC, whilst it has 53.43% in giant and LC. It's no small-cap fund, but it has done just fine this year. Avoidance of China (some 5%) and big slices of Indian and Taiwanese stocks appear to be the secret sauce. Wasatch itself has this to say: "Seeks the highest-quality small-cap growth companies in emerging markets."
In November Commentary, Professor Snowball wrote a very compelling article on investing in China. Lynn Bolin also posted several emerging market fund and ETF with smaller exposure to China.
This Rekenthaler M* article on EMs may be worth a read. He finds that shareholders like us (I.e., outsiders, not insiders) have not seen our EM investments pay anywhere near what the growth rates of the various countries would suggest, especially since the GFC.
If I may digest from the original post on EM small caps for a moment. There are still few EM opportunities still available in larger caps. I use NWFFX for a number of years as a lower risk EM fund. The broader mandate allow companies that derive majority of their revenue from EM including Microsoft. https://morningstar.com/articles/975441/go-active-in-emerging-markets
Comments
Thanks.
Mona
Here's the performance YTD:
ARTYX -4.19%
FSEAX -8.55%
WAESX +16.11
MIOPX -2.02
WAEMX +24.13
And a link on WAEXS courtesy of Kiplinger/ Nov 24: https://www.kiplinger.com/investing/mutual-funds/603792/wasatch-emerging-markets-smallcap-goes-its-own-way
ARTYX and FSEAX = not my finest choices for 2021. Should have exited back in March.
Strangely, WAEMX, (Wasatch EM SC Fund) holds, according to M*, only 8.72% in SC and MC, whilst it has 53.43% in giant and LC. It's no small-cap fund, but it has done just fine this year. Avoidance of China (some 5%) and big slices of Indian and Taiwanese stocks appear to be the secret sauce. Wasatch itself has this to say: "Seeks the highest-quality small-cap growth companies in emerging markets."
Link
https://www.morningstar.com/articles/1032995/emerging-markets-equities-a-promise-half-fulfilled
https://morningstar.com/articles/975441/go-active-in-emerging-markets