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Fund Spy

5 Emerging-Markets Medalists Weather the Storm

Looking back at a difficult 12 months for some of our favorite emerging-markets funds.

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This figures to be an interesting year for emerging markets. The current environment of falling share prices, falling oil prices, and a strong dollar could take us in a lot of directions. Let’s take a look at some emerging-markets Morningstar Medalists and how they have performed of late.

 Virtus Emerging Markets Opportunities (HEMZX), with a Morningstar Analyst Rating of Silver, performed brilliantly with a 7.3% gain for the 12 months through March 10 (top 2% of the category). The fund has a big overweighting in India and a big under­weighting in China. India rebounded from a poor 2013 when the fund lost 6.6% to have huge gains over the past 12 months. Rajiv Jain has 28% of assets in India versus 11% for peers and 9% in China versus 17% for peers. So, in the short run, that positioning will have a major influence. However, the main point of buying the fund is Jain’s skill in finding high-quality companies at decent prices, which ought to lead to solid long-term results even if India’s markets are merely middling for the next few years.

Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.