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Reply to @Hogan: I was referred to iShares MSCI Emerging Mkt Min Vol Index, EEMV and PowerShares S&P Emerging Markets Low Volatility, EELV.
I have looked at VMMSX, a fairly new active managed EM fund since Feb 2011. Would prefer one with longer track record that spans an entire business cycle.
Right here, right now, I find EEMV to be the most attractive LC/MC EM equity ETF/index fund. I would also take a look at ECON to take advantage of the growth in EM consumer spending, although ECON is a little pricey (net ER 0.85%) and has a very high exposure to Latin America (48%). EELV is interesting but it has inadequate average daily trading volumes. In our portfolio, we are covering our EM equity exposure needs with a mix of THDIX, ABEMX and ABNIX.
Reply to @kevindow: At the present I don't find market weighed EM index funds is a good approach to this asset class despite the low ER. I also agree that low daily trading volume also carries larger ask/bid spread.
This year the large cap EM index is trailing the developed markets. Since many BRIC economies are export dependent, I am seeking active management where they can navigate thorough the changes and still manage to provide respectable returns. We are using LZEMX and WAEMX for EM exposure, but always open to other choices discussed on this board. How do you like THDIX, ABEMX and ABNIX so far? How do you gain access to these institutional funds?
So far this year, EM equities have been very disappointing. ABEMX has a consistent record of outperforming the EM index with lower volatility, but has recently closed to new investors. THDIX has been an excellent performer since inception, and its composition has consistently varied from VWO/EEM. ABNIX currently has a significant exposure to SC/MC EM equities, currently 31%, but does not have a mandate to do so. Since the current management team took over on 10/23/2009, ABNIX has performed well with below category average volatility. All three of these funds have had attractive Upside/Downside capture ratios.
I bought AEMSX in my Fidelity retirement account when it was available for a $500 minimum and an initial $75 TF. After the initial purchase, I added to my position for a $5 fee per AIP purchase. I then requested that Fidelity convert my AEMSX to the lower cost ABEMX, which they did after obtaining approval from Aberdeen. Even though AEMSX/ABEMX are reportedly closed to new investors, they appear to be still available to new investors according to the Fidelity web site.
THDIX continues to be available in Fidelity retirement accounts for a $500 minimum and an initial $75 TF.
I bought ABNIX in my Firstrade retirement account, where it is still available for a $500 minimum and a $9.95 transaction fee.
We continue to use Oppenheimer ODVYX for most client EM exposure. We also have a chunk of dollars in Wasatch WAEMX. For more specific regional coverage, we use Matthews MAPIX. It is a kind of 'chicken' way to invest in China. For discussion board members who did not have a position in Oppenheimer before it closed, options might include Virtus HEMZX or HIEMX and Thornburg THDAX or THDIX. Some custodians have the A shares available at NAV, or the I shares without the high initial minimums.
I still have MACSX, MSMLX and a bit of DEM, as well as a larger position in conglomerate Jardine Matheson (JMHLY) and a smaller position in Hutchison Whampoa (HUWHY). I'm continuing to consider adding to EM if it continues to underperform.
Reply to @kevindow: Wonder why many EM funds are closing? In general this asset class has been lagging the developed markets. So there should be fewer dollars going into them.
thanks for the heads up with Aberdeen EM funds. Didn't know that one can switch from one share class to the institutional class. Thornburg Developing Market fund is doing better than its peers thus far. It also appears there is over 23% invested in frontier markets - Chile, Columbia, Indonesia and Philippines.
Reply to @Sven: Not sure it is the process, but it is certainly the manager and his team. My experience is that while a similar process might be used by several funds, in the end it's the ability and talent of the manager that comes to the top. That's why we tell clients we are hiring managers, not buying funds. It is very important that we spend a lot of time doing our homework on the managers.
Comments
I have looked at VMMSX, a fairly new active managed EM fund since Feb 2011. Would prefer one with longer track record that spans an entire business cycle.
Right here, right now, I find EEMV to be the most attractive LC/MC EM equity ETF/index fund. I would also take a look at ECON to take advantage of the growth in EM consumer spending, although ECON is a little pricey (net ER 0.85%) and has a very high exposure to Latin America (48%). EELV is interesting but it has inadequate average daily trading volumes. In our portfolio, we are covering our EM equity exposure needs with a mix of THDIX, ABEMX and ABNIX.
Kevin
This year the large cap EM index is trailing the developed markets. Since many BRIC economies are export dependent, I am seeking active management where they can navigate thorough the changes and still manage to provide respectable returns. We are using LZEMX and WAEMX for EM exposure, but always open to other choices discussed on this board. How do you like THDIX, ABEMX and ABNIX so far? How do you gain access to these institutional funds?
Thanks
So far this year, EM equities have been very disappointing. ABEMX has a consistent record of outperforming the EM index with lower volatility, but has recently closed to new investors. THDIX has been an excellent performer since inception, and its composition has consistently varied from VWO/EEM. ABNIX currently has a significant exposure to SC/MC EM equities, currently 31%, but does not have a mandate to do so. Since the current management team took over on 10/23/2009, ABNIX has performed well with below category average volatility. All three of these funds have had attractive Upside/Downside capture ratios.
I bought AEMSX in my Fidelity retirement account when it was available for a $500 minimum and an initial $75 TF. After the initial purchase, I added to my position for a $5 fee per AIP purchase. I then requested that Fidelity convert my AEMSX to the lower cost ABEMX, which they did after obtaining approval from Aberdeen. Even though AEMSX/ABEMX are reportedly closed to new investors, they appear to be still available to new investors according to the Fidelity web site.
THDIX continues to be available in Fidelity retirement accounts for a $500 minimum and an initial $75 TF.
I bought ABNIX in my Firstrade retirement account, where it is still available for a $500 minimum and a $9.95 transaction fee.
Kevin
HEMZX/HIEMX is a fine fund but it recently closed to new investors.
Kevin
thanks for the heads up with Aberdeen EM funds. Didn't know that one can switch from one share class to the institutional class. Thornburg Developing Market fund is doing better than its peers thus far. It also appears there is over 23% invested in frontier markets - Chile, Columbia, Indonesia and Philippines.
What makes Oppenheimer's investment process unique or better than others?