Templeton Global Bond manager Michael Hasenstab outlines his criteria for investing in developing markets, and explains why he sees opportunities in China and Korea.
Many managers focus on currency denomination or corporate debt, while others are beginning to take a total-return approach.
Lower valuations reflect a slower growth environment, with currency volatility continuing to affect certain markets in the near term, says Morningstar's Patty Oey.
Consumption-led industries will drive Chinese growth for the next decade, and health-care spending, in particular, should outpace China's overall economy, says Morningstar's Dan Rohr.
Louis Mendes of Silver-rated Columbia Acorn International says the fund has found value in niche industrial and tech companies, as well as consumer names, while steering clear of regulated companies and low-cost manufacturing.
Offerings from Oberweis, Rainier, and Seafarer are proving even small funds can be competitive when it comes to picking stocks across the globe.
After several years of mixed returns, investors are rethinking how they get exposure to emerging markets.