I am trying to make a choice on a new Emerging market position . I need some clarifications?
1.FSEAX -looks amazing, The Martin Ratio/ MaxDD and recovery - and the performance SCHWAB SUMMARY STATES EX JAPAN - But in the country allocation detail it shows an 85 position in Japan
2. Is SIGIX and PRIJX recent performance lackluster solely due to the Value proposition, and is that a great reason to invest there at this time ?
3. per David's recent comments and Theresa Kongs comments about EM Bonds ( I don't have any ) would a position in FTEMX/FTDEX - (20 % BONDS ) be a timely move.
4, I haves dry powder in both taxable and un taxable accounts ready to invest - currently very heavy large Caps US- so looking to diversify into Foreign Small caps and EM . I have already started ne position in MFAIX - Looking at lower risk way to add the higher risk EM to my portfolio.
Many thanks !
FSEAX had a partial change in management of the fund at the end of 2019 or maybe just into January, 2020. The fund really took off! I think under the current Covid regime, it looks like a "gooder" to me: governments everywhere are doing anything and everything to "juice" their economies. As long as the advanced, industrialized countries continue this way, the EM markets will follow nicely along on the coattails. Just my 2 cents.
You should also take a look at MATFX. I really like the manager of this fund very much and he's been running it with strong performance for about 15 years. This one is going to have a larger position in technology and communication services so that's something to consider. Those sectors are starting to lag here in the U.S. Will that be the case for EM too going forward? not sure.
For myself, I haven't added to EM in several months and have instead increased my stakes in U.S. financials and also in U.S. small cap because I see those as being a bit stronger in terms of opportunities and because my personal asset allocation has been low in those areas. But I will probably do so soon. I think EM Asia is very promising over the long term.
DEM: ARTYX, FEMKX, MPACX, TSEMX, NWFFX, WBENX, WESNX
China: FHKCX, MCHFX, MCSMX
Pac/Asia exJ: FSEAX, MATFX
EM SC: WAEMX, VAESX
Own ARTYX and recently bought FSEAX
Just missed earning a port slot/Next to possibly add: FEMKX, FHKCX, MATFX, VAESX
That's a good one to watch. I've owned MEASX in the past, but just MAPIX at this point. I still wish Matthews hadn't dumped the value fund. It'd be doing great now with the big runup in Korea, where they had the bulk of the portfolio.
If so, then feast/famine EMs are NOT the place for you to be.
I still believe the US is where to invest, but a little International might be advantageous and a provide a smidgen of “diversification”.
I chose it over FSEAX because of the tax efficiency. Outside of FSEAX this ms fund beats just about all peers in metrics and returns.
My major trepidation is 2019 & 2020 were very good years. Is 2021 and beyond going to be sub-par, if not negative?
Of course, this is a planned long-term investment, but ........
Any thoughts, suggestions or opinions?
May i ask why you chose FSEAX? Usually new management scares people away, especially from a fairly accomplished previous manager.
But as I said... you picked a fine fund. I’ve been thoroughly impressed with MS and am so fortunate to have a few of their funds.
If you don’t mind, what MS funds do you own?
Are they major players in your portfolio?
I recently backtested a simple formula... 4 funds only. FXNAX, FBGRX, MGGPX and FBALX.... I couldn’t believe what I discovered. It was only about 4 percent less than my portfolio over 5 year plus. So I may have to reign myself in and KISS.