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Emerging Market Fund

edited July 16 in Fund Discussions
Investigating merging market funds . Willing to give up some performance for a bit of downside protection- understanding that emerging markets are inherently riskier.
APDYX - While labeled as emerging market in MFO - Has second highest holding as U.S at 31.8% .

I would be grateful for insights and Suggestions

Comments

  • From MFO premium site: The Fund seeks long-term capital appreciation. It constructs a diversified portfolio of securities that offer exposure to developing world economies. In pursuit of this goal it generally invests substantially in companies domiciled in or economically tied to countries that have characteristics of the developing world.

    31.8% likely companies domiciled here in the US but sell their products in EM. NEWFX can buy EM companies or Developed companies that do most of their business in EM countries.
  • I like GQGPX for my EM exposure but I also own the Artisan fund you mentioned. It falls into the Growth bucket in the Style Box as do most Open-End, Emerging Markets funds. The portfolio manager is one of the mot respected EM PM's in the business.
    Artisan is a great product and an aggressive one at that and kudos to you for looking under the 'hood'. It's more of a Global Tactical play on Emerging Markets with the US Stocks in there. This is most likely companies that derive most of their profits/products from EM countries but are domiciled in the US.
  • Lewis S. Kaufman was the prior portfolio manager at Thornburg's Developing World until he moved to Artisan in June 2015.

    From Artisan prospectus

    https://www.sec.gov/Archives/edgar/data/935015/000119312520017081/d843301d485bpos.htm#48aa58da-705b-4d3f-b336-162b6489040a_1

    Lewis S. Kaufman, CFA— Mr. Kaufman is a Managing Director of Artisan Partners and portfolio manager of Artisan Developing World Fund since its inception in June 2015. Prior to joining Artisan Partners, Mr. Kaufman was a managing director and portfolio manager for Thornburg Investment Management, where he managed the developing world strategy from its inception in 2009 through January 2015. Mr. Kaufman also co-managed the international ADR strategy from 2007 to 2013, after joining Thornburg in 2005 as an associate portfolio manager

    I own ARTYX.

    Here is last the Thornburg prospectus prior to his departure:

    https://www.sec.gov/Archives/edgar/data/816153/000119312515026867/d819451d485bpos.htm#prob819451_154
  • I own ARTYX as well. It’s had some rocky going this year. The other EM MF I have is PDEZX managed by PGIM Jennison, a really good growth shop. Downside protection for EM may be hard to achieve. Some think the new Dodge and Cox EM fund will do the trick, others lean towards Seafarer or Causeway for value tilts. GQGPX, managed by a seasoned vet, Rajiv Jain, has a decent record.
  • Personally, I'm not a fan of EM Funds that by U.S. stocks... I get the end-market argument, but it's off-benchmark exposure and the manager will use that to explain away underperformance when it occurs (i.e. broader U.S. stock market weakness the root cause... sorry, I'm not buying that - it was your stock selection); however, when it works in the manager's favor, will tout his/her intellect for doing so.
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