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Fallen Funds - TREMX

beebee
edited April 16 in Fund Discussions
TREMX is off 83% YTD.

More importantly, its trailing average returns are negative over all time periods (1-15 yrs). I wonder how TRP is repositioning this fund and its 40 holdings in light of the conflict.

Companies are not countries...but sometimes companies are owned by countries:

https://en.wikipedia.org/wiki/List_of_government-owned_companies

US Owned Enterprises:
State-owned_enterprises_of_the_United_States

Russian Owned Companies:
https://en.wikipedia.org/wiki/State-owned_enterprises_of_Russia

TREMX 2 largest holdings, Gazprom and Sberbank and others, like Rosneft, Russia has controlling interest (over 50%).

Comments

  • "Sunk Costs"

    Sell, learn your lesson and move on?

    Seriously. Why the hell invest outside of the USA? You can get any exposure you want by selecting certain USA co's to invest in? Example: You want exposure to high tech China...instead you buy MSFT, GOOGL, INTC etc, why screw around with shady, slippery gov'ts etc that are arming themselves to fight the USA?

    You want Russia...what is that but big bank, ag, oil...you mean you can't get exposure thru BAC, DVN, EOG MOS?

    Seriously.

    Best Regards,

    Baseball Fan
  • The situation with Russia is worse than that of 2008, where everything took several years to fully recover. Is there a turn-around this time?

    BlackRock stands to loss the most - billions $ since they have the largest Russian exposure. Earning season is underway and watch for the financial sector. JP Morgan reported last week.
    https://jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2022/1st-quarter/c1afebcf-9ba1-44de-97fc-a446d7baf619.pdf
  • edited April 16

    "Sunk Costs"

    Sell, learn your lesson and move on?

    Seriously. Why the hell invest outside of the USA? You can get any exposure you want by selecting certain USA co's to invest in? Example: You want exposure to high tech China...instead you buy MSFT, GOOGL, INTC etc, why screw around with shady, slippery gov'ts etc that are arming themselves to fight the USA?

    You want Russia...what is that but big bank, ag, oil...you mean you can't get exposure thru BAC, DVN, EOG MOS?

    Seriously.

    Best Regards,

    Baseball Fan

    Not all foreign countries are like China or Russia.
    There are compelling reasons for investing some of your portfolio outside of the USA.
    Personally, I'd avoid authoritarian governments and state-owned enterprises.



  • Not all foreign countries are like China or Russia.
    There are compelling reasons for investing some of your portfolio outside of the USA.
    Personally, I'd avoid authoritarian governments and state-owned enterprises
    .

    Quite right. And lately, with oil and gas in the spotlight, Norway is a presence in that industry. Canada, too--- along with rocks and trees. But Pemex (Mexico) is State-owned, I understand. I dunno about Ukraine?
    ......Just found THIS:
    "...Ukraine has tremendous natural resources for meeting domestic oil and gas production needs, with estimates of approximately 900 billion cubic meters of proven reserves of natural gas. In Europe, Ukraine ranks second for gas reserves..."

    But I understand the Ukraine bourse has been totally shut. I bet lots of people would love to give Ukraine the benefit of their investment money.
  • Please take a look at Freedom 100 EM ETF, FRDM. Fact sheet is provided below.
    https://alphaarchitect.com/wp-content/uploads/compliance/etf/factsheets/FRDM_Factsheet.pdf
    Country selection and weights are based on composite freedom scores derived from 76 quantitative variables measuring each country’s level of protection for both personal and economic freedoms. Country level data is provided by the Fraser Institute and Cato Institute.
  • Cool!
  • In emerging markets category, TRAMX - T Rowe Price Africa & Middle East Fund up 12% YTD. Top Quintile for 1-10 yrs.

    https://www.wsj.com/market-data/quotes/mutualfund/TRAMX
  • Freedom FRDM looks like a very specialized ESG fund, and it picked a very soft ESG criteria to focus on.
  • @yogibb, this board had a discussion on FRDM last year. https://mutualfundobserver.com/discuss/discussion/57904/investing-in-freedom-freedom-100-emerging-markets-etf-frdm/p1

    For what it worth, this year this ETF is having a much smooth ride given the geopolitical events - Ukraine war and China's COVID lockdown.
  • DavidF said:

    In emerging markets category, TRAMX - T Rowe Price Africa & Middle East Fund up 12% YTD. Top Quintile for 1-10 yrs.

    https://www.wsj.com/market-data/quotes/mutualfund/TRAMX

    I got in on 31 January. Pretty happy. Already missed about HALF of the YTD gains... 8% of portf. right now.
  • Africa? Middle East?

    Why? Can you guys/gals even pick those places out on a map? You want to fund some of those companies in countries that violate human rights and freedoms...corruption, arbitrary arrest, disappearances, local dynamics, political mumbo jumbo, hard labor mining commodities, etc?

    Quoted directly from T Rowe P web site on fund web page "subject to the risk of abrupt and severe price fluctuations" Hmm, sounds great, where do I sign up? (sarc)

    No seriously congrats on your monetary gain, but what could you possibly invest in there for an exposure that you could not get investing in a US company? so set aside Russia, China etc...so you want to invest in Europe, why?...what do you have there? Big Pharma...Merck, JNJ, Pfizer etc doesn't do it for you? Materials, Banking on and on...you can get the same exposure in the USA companies

    Good Luck guys, not for me, don't/wouldn't invest a dime into those areas meaning Russia, China, Africa, Middle East.

    Baseball Fan
  • edited April 18
    Yes, I've been to the Middle East, though not to Africa. Yes, I know the map goddam well. Like anywhere, there are people in the cities and people in the hustings. Yes, corruption is often rampant. Remind you of anywhere ELSE?????? P/Es are lower than the US and Europe, overall. Those Big Pharma companies you name are all the ones I love to hate. And the Congress is in their pockets. It's called capitalism. I'd prefer a different, more equitable system. But PEOPLE keep getting in the way of that.
  • edited April 18
    TRAMX is benefitting, in this one way at least, from its 25% stake in S. Africa, which (although it's down recently) is up 13+% ytd, based on the etf EZA, which I mentioned in one of the "what have you been buying" threads. I'm thinking it's about gold and diamonds and all their other mining products, and that those may also be propping up the currency.

    The "others," from Wikipedia (imho, an unusually strong article for W):

    "South Africa has always been a mining powerhouse. Diamond and gold production were in 2013 well down from their peaks, though South Africa is still number five in gold and remains a cornucopia of mineral riches. It is the world's largest producer of chrome, manganese, platinum, vanadium and vermiculite. It is the second largest producer of ilmenite, palladium, rutile and zirconium. It is also the world's third largest coal exporter. South Africa is also a huge producer of iron ore; in 2012, it overtook India to become the world's third-biggest iron ore supplier to China, the world's largest consumers of iron ore."

    There are plenty of footnotes to the article if interested.

    Yes, S. Africa still has a very high level of economic inequality.
  • Ted often used to say that there was no reason to invest in anything outside the US which runs counter to all the conventional investing wisdom of spreading one's bets worldwide. M* amongst many other portfolio construction advisory firms generally instruct one to maintain an allocation to Europe, emerging markets and so on and so forth, something that I initially thought of as good advice or at least that it made good sense.

    In my experience however I discovered that outside of an occasional good run my foreign investments just basically sat there like sandbag ballast adding little if anything toward portfolio growth and providing no downside protection when markets advanced to the rear.

    Ergo for better or worse I've come to eschew strict foreign company investments not as a hard and fast rule but mostly because I wasn't experiencing any or little positive benefits. I continue to watch them however for positive momentum. YMMV.
  • Makes sense, Mark. I often feel the very same way, although just lately, my foreign stuff has jumped from 10 to 17 percent of total.
  • edited April 18
    Re South Africa, violence at mining sites has cut into production. I’m not up to speed on all the different minerals necessary for the green transition, but there are other deposits of many of them globally in less volatile settings. Even Norway is rich in minerals - working to extract them from a recently discovered undersea trove.

    No opinion on foreign holdings. I cut my investment teeth on TEMWX for near 2 decades, so still have an ingrained attraction to diversifying globally. To wit, it hasn’t been profitable for quite a while.
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