This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

4 Emerging Market Funds to Watch

Another cautious fund is Thornburg Developing World (THDAX). Portfolio manager Lewis Kaufman sometimes takes blue chips that are based in the developed countries but derive most of their profits from the emerging markets. The aim is to find low-volatility companies that are benefitting from the rapid growth of the developing world. The fund started in late 2009, and so far the results have been promising. In 2010, the fund outdid 99% of emerging market funds, and last year Thornburg outdid 84% of peers.

A holding is Colgate-Palmolive (CL), which derives most of its earnings from the emerging markets. The company dominates toothpaste markets in Mexico, and is a leading player in Brazil. "Colgate shares have delivered about the same returns as the emerging markets--but with less volatility," says Kaufman.

He also likes Schlumberger (SLB), the oilfield services giant. The company is a leader in assisting offshore drilling in Latin America.

To deliver steadier results in the emerging markets, several companies recently introduced balanced funds, which hold mixes of stocks and bonds. New entrants include Dreyfus Total Emerging Markets (DTMAX) and Lazard Emerging Markets Multi-Strategy (EMMOX). The fixed-income holdings provided an important boost last year when emerging markets bond funds returned 2%.

Dreyfus portfolio manager Alexander Kozhemiakin says that he can put up to 80% of his assets in equities. He currently has 58% in stocks. "We want to keep some powder dry because of the uncertainty in Europe," he says.

Kozhemiakin says that emerging market bonds are attractively priced. Many investment-grade issues yield 7%, an appealing payout at a time when 10-year Treasuries yield 2.05%. He favors bonds from Mexico. Because of anemic growth in the U.S., the Mexican economy should remain sluggish. That should prevent interest rates from rising, a process that can hurt bond prices.
Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $119.11 1.10%
FB $104.30 -1.10%
GOOG $746.78 -0.46%
TSLA $229.79 -0.79%
YHOO $33.18 0.71%


Chart of I:DJI
DOW 17,790.31 -8.18 -0.05%
S&P 500 2,088.50 -1.61 -0.08%
NASDAQ 5,112.7990 -14.7260 -0.29%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs