Top Performing Emerging Markets Stock Mutual Funds 2011

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Top Performing Emerging Markets Stock Mutual Funds 2011
Top Performer EM Stock Funds
There are two ways to invest in emerging markets such as bond emerging markets and stock emerging markets. Emerging markets equity is the most popular among investors or traders and investment can be done through either mutual funds or exchange traded fund. I’ll focus on EM mutual fund for this article.

These EM equity funds have more volatility than other foreign equity funds or domestic equity funds. While it is riskier, the reward may be enormous as well. Emerging Markets countries are countries in Eastern Europe, the Middle East, Latin America, Asia, and the Far East. The most popular countries are known as BRIC nations (Brazil, Russia, India, and China).

The following list is sorted based on its performance up to May 2011 from variety of financial sources: Morningstar, Yahoo finance, Google finance, SmartMoney, Kiplinger, etc.

Six Top Performing Emerging Market Equity Mutual Funds 2011:
  1. Calamos Evolving World Growth A (CNWGX)
  2. Allianz AGIC Emerging Markets Opportunity A (AOTAX)
  3. Thornburg Developing World A (THDAX)
  4. Virtus Emerging Markets Opportunity A (HEMZX)
  5. Mirae Asset GEM Great Consumer A (MECGX)
  6. American Funds New World A (NEWFX)
updated on 06/02/2011

My latest Best Emerging Markets Stock Mutual Funds of 2012 article.

NoFund DescriptionTickerYieldMorningstar RatingNet Assets (Mil)Expense RatioMin to Invest
1Calamos Evolving World Growth ACNWGX0.25%N/A$186 1.67%$2,500
2Allianz AGIC Emerging Markets Opportunity AAOTAX0.00%2$133 1.84%$1,000
3Thornburg Developing World ATHDAX0.10%N/A$77 1.82%$5,000
4Virtus Emerging Markets Opportunity AHEMZX0.60%4$1,600 1.66%$2,500
5Mirae Asset GEM Great Consumer AMECGX0.00%N/A$17 0.00%$2,000
6American Funds New World ANEWFX1.35%4$22,400 1.04%$250
7Mirae Asset GEM Sector Leader AMALGX0.00%N/A$17 0.00%$2,000
8Causeway Emerging Markets InvestorCEMVX1.88%3$56 1.46%$5,000
9Quant Emerging Markets OrdQFFOX0.97%3$194 1.74%$2,500
10JP Morgan Emerging Economics AJEEAX0.13%3$297 1.85%$1,000
11Driehaus Emerging Markets GrowthDREGX1.86%4$860 1.63%$10,000
12JHVIT American New World Tr Ser IJANOX1.06%N/A$101 0.65%$0
13Invesco Developing Markets AGTDDX0.66%4$2,700 1.52%$1,000
14Goldman Sachs Structured Emerging Markets Eq AGERAX0.76%3$362 1.45%$1,000
15Delaware Emerging Markets ADEMAX0.50%4$2,600 1.85%$1,000
updated on May 31, 2011

1. Calamos Evolving World Growth A (Ticker: CNWGX)

As the top performing funds, Calamos Evolving World Growth investment is looking for capital growth in long-term period. The net assets investment is generally allocated as follows:
  • At least 40% in securities of foreign issuers;
  • At least 35% in equity, convertible or debt securities issued by emerging market countries;
  • The rest of assets are invested in equity, convertible or debt securities of other companies, regardless where they are organized
Calamos Evolving World Growth A (CNWGX)
CNWGX fund details
CNWGX has distributed 0.25% dividend this past year. Last dividend distributed in December 2009 was 0.07%. The expense ratio rate is 1.67% per year. The minimum initial investment to invest in the brokerage account of this fund is $2,500 and $500 for IRA account.

There is a 12b1 fee of 0.25% and sales load fee of 4.75%. This fund has returned 22.60% over the past one year. Since its inception in August 2008, the fund has returned 55.92% in 2009 and 20.19% in 2010. It has 10.41% of year-to-date return.

Investor can also invest in other fund classes to get lower fees. The other class tickers of this emerging markets stock fund are CNWZX (B Class), CNWDX (C Class) and CNWIX (Institutional Class).

The lead manager of this fund is John Calamos, Sr. He has managed this fund since its inception. He also serves as the founder of Calamos Asset Management Inc. This Calamos fund can be bought from 47 brokerages include Scottrade Load, Fidelity Retail Funds Network, Common Wealth Universe, Raymond James, JP Morgan, Vanguard, Firstrade, etc. The fund has 48.30% of annual holdings turnover as of October 2010.

The top 10 largest holdings out of 81 are Baidu.com Inc, HTC Corp, MercadoLibre Inc, ARM Holdings, Wal-Mart de Mexico, Novo Nordisk, Subsea 7, CNOOC, Companhia de Bebidas das Americas and Danone. And the top 10 country allocations are United States, China, United Kingdom, Hong Kong, Taiwan, India, Brazil, Denmark, South Africa and Switzerland.

2. Allianz AGIC Emerging Markets Opportunity A (Ticker: AOTAX)

Allianz AGIC Emerging Markets Opportunity A (AOTAX)
AOTAX fund
This Allianz AGIC Emerging Markets Opportunity fund has the main objective to provide maximum long-term capital appreciation. The majority of the assets are invested in securities of companies which are economically related to emerging securities markets’ countries. The fund prefers to invest in the companies listed in MSCI Emerging Market Index (the benchmark). The primary assets investment is in common stocks through depositary receipts (ADRs).

This emerging markets stock fund is managed by Kunal Ghosh since 2007. The fund also has an annual expense ratio of 1.84%, a bit higher than the category average (1.69%). This investor class fund has 0.25% management fee and 5.50% sales load fee.

To invest in this Allianz fund, you will need $1,000 minimum initial investment for brokerage account. For IRA account, please check with your brokerage. The fund YTD return is 10.70%. The fund has returned 23.27% over the past year, and 7.06% over the past 5 year. The best performance was achieved in 2009 with 66.46%. The fund beta is 1.05%.

You can also invest in other classes of this Allianz AGIC fund:
  • Investor C: AOTCX
  • Investor D: AOTDX
  • Investor P: AEMPX
  • Institutional: AOTIX
The top holdings of AOTAX are Lukoil OAO (Russia), Formosa Plastics Corp (Taiwan), PTT PCL (Thailand), Kia Motors Corp (South Korea), GCL – Poly Energy Holdings Ltd (China), Vale SA (Brazil), HTC Corp (Taiwan), SJM Holdings Ltd (Hong Kong), Hyundai Motor Co (South Korea) and China Petroleum & Chemical (China). These are the top holdings as of April 2011.

3. Thornburg Developing World A (Ticker: THDAX)

Thornburg Developing World A (THDAX)
THDAX details
Thornburg Developing World investment is intended to gain long-term capital appreciation. To achieve the goal, the majority of the assets are invested in equity securities and debt obligations of developing country issuers with the expectation that it will be weighted in favor of equity securities.

THDAX may invest in debt obligations of any maturity and quality, and it may include, but not limited to, those of sovereign and corporate issuers. It as well may invest in any size of capitalization issuers as well the debt obligations which are combined of equity and debt characteristics.

This top performer mutual fund has been managed by Lewis Kaufman since its inception in December 2009. The expense ratio of this Thornburg Developing World fund is 1.82% per year and is higher than 1.69% category average. This fund also charges a front end sales load of 4.50%. If you are interested in this fund, you can invest in other fund class which is Class C (Ticker: THDCX). The fund’s benchmark is MSCI Emerging Markets Index.

Based on load adjusted return, the fund has returned 22.73% over the past one year. For 2010, this Thornburg fund has returned 30.73%. There is no rating from Morningstar.

As of March 2011, the fund’s top ten emerging markets exposure are in these countries, China (24.9%), Brazil (11.4%), Indonesia (9.1%), Russia (8.1%), USA (8.1%), India (7.5%), Turkey (5.8%), Mexico (5.7%), South Africa (3.8%) and Hong Kong (3.1%). The top ten industries are Materials (12.6%), Software & Services (10.6%), Energy (10.1%), Banks (9.1%), Household & Personal Products (8.4%), Health Care Equipment & Services (8.0%), Retailing (7.7%), Food & Staples Retailing (7.3%), Food, Beverage & Tobacco (5.3%) and Pharmaceuticals, Biotechnology & Life Sciences (5.2%).

The top 10 positions of its holdings as of March 2011 are OAO Gazprom ADR (3.6%), Clicks Group Ltd (3.6%), PT Indocement Tunggal Prakarsa (3.5%), Colgate Palmolive Co (3.5%), Genomma Lab Internacional SA (3.2%), Hengan International Group Co Ltd (3.2%), Cia Hering (3.1%), Sinopharm Group Co 3.1%), New Oriental Ed & Tech Group Inc (2.9%) and Asian Paints Ltd (2.7%).

4. Virtus Emerging Markets Opportunity A (Ticker: HEMZX)

The Virtus Emerging Markets Opportunity fund objective is to provide capital appreciation. It invests most of its net assets in equity securities or equity-linked instruments of emerging market countries’ issuers (within any capitalization). Investors in HEMZX get the exposure to emerging economies through well-established companies.

Virtus Emerging Markets Opportunity A (HEMZX)
HEMZX Fund details
Rajiv Jain is the current fund manager. He has been the lead manager since May 2006. The fund annual expense ratio is 1.66%. HEMZX has 0.25% of 12b1 fee and 5.75% of front-end sales load fee. Investor may need $2,500 initial investment to invest in this fund for the brokerage account.

The fund has YTD return of 4.19%. Over the past year, it has returned 18.54%. The fund also has 3 stars rating from Morningstar. This fund can be purchased from several brokerages such as JPMorgan, Schwab, Scottrade, TD Ameritrade, Edward Jones, etc.

Other classes of this fund are Class C (PICEX) and Institutional Class (HIEMX). Some of these classes may charge lower expense fee, please check with your fund brokerage for details.

As of March 2011, the top 5 sectors of this fund are consumer staples (39.94%), financials (23.15%), information technology (11.87%), consumer discretionary (7.40%) and utilities (4.72%). And the top holdings are Housing Development Finance Corp Ltd, HDFC Ltd, Companhia de Bebidas das Americas ADS, Souza Cruz SA, ITC Ltd, Baidu Inc, British American Tobacco, CETIP S.A., Semen Gresik and Wal-Mart de Mexico.

5. Mirae Asset GEM Great Consumer A

As one of the smallest fund in this list with $17 million assets, Mirae Asset GEM Great Consumer fund objective is to achieve long-term capital growth. The fund normally invests more than 80% of net assets in equity securities of issuers in emerging markets or that are tied economically to emerging markets, provided that, in either case, the issuers of any such securities are expected to be beneficiaries of the “Great Consumer” trend.

The fund is managed by Joohee Hwan An since 2010. It does charge 5.75% sales load fee. The fund expense ratio is 1.85% per year. As part of newly introduced fund, this Mirae Asset Global Investments fund doesn’t have any long term performance history. It also doesn’t have any rating from Morningstar.

6. American Funds New World A (Ticker: NEWFX)

American Funds New World A (NEWFX)
NEWFX fund
American Funds New World fund seeks for capital appreciation in long-term period. The majority of the assets are invested in common stocks of the companies that have substantial exposure to countries with developing economies and/or markets. NEWFX may invest at least 35% in equity and debt securities of issuers mainly established in qualified developing economics (or market) countries.

The fund lead manager is David C. Barclay. He has managed this fund since its inception in June 1999. This American Funds New World has $21.46 billion total net assets which is one of the largest funds in this best ranked list. NEWFX applies 0.23% 12b1 fee and 5.75% front end sales load. The fund’s expense ratio is 1.04% per year. If you are interested to invest in this fund, it has a low minimum initial investment, $250, with $50 for subsequent investment.

Since its inception, this diversified emerging markets stock fund has recorded 7 years with positive return years and 4 years of negative return. The best total return so far was in 2009 with 52.21%. It has 8.78% of 5-year average return. And it has returned 12.38% over the past one year and 12.55% over the past decade.

NEWFX can be bought from a range of 71 brokerages include Merrill Lynch, Schwab Retail, JP Morgan, Vanguard, Edward Jones, E Trade Financial, Raymond James, Federated Trust Connect NTF, etc. Besides NEWFX, you can invest in other classes of this fund such as NEWBX (Class B), NEWCX (Class C), NWFFX (Class F-1) and NFFFX (Class F-2). For A Class, you will pay the sales charge at the time of purchase, while for Class B and C, there is a sales charge applies when you sell your shares within certain months.

As of April 2011, the largest industry holdings of this fund are Commercial banks (9.6%), wireless telecommunication services (6.6%), oil, gas & consumable fuels (6.4%), pharmaceuticals (4.4%), food products (4.2%), chemicals (3.7%), automobiles (3.5%), food & staples retailing (3.1%), beverages (3.1%) and metals & mining (2.3%).

The top ten equity holdings are America Movil in Mexico, Nestle in Switzerland, MTN Group in South Africa, Itau Unibanco Holding in Brazil, Pharmstandard in Russian Federation, Industrial and Commercial Bank of China in China, Samsung Electronics in South Korea, Novo Nordisk in Denmark, Anheuser-Busch InBev in Belgium and Amil Participacoes in Brazil.

Disclosure: No Position

Other best ranked fund in diversified emerging markets equity funds performance can be found below.

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