Kiplinger\'s Personal Finance 03.2020

30 KIPLINGER’S PERSONAL FINANCE^ 03/2020

China shares soared 25% last year, despite a
simmering trade spat. The country represents
a 34% slug of the MSCI Emerging Markets in-
dex, so that helped lift the benchmark to an
18.4% gain in 2019. Fidelity Emerging Markets
has earned a top-10 rank in each of the four
time periods; however, its longtime manager
just left, so we’re wary of recommending it.
Consider instead Artisan Developing World.
It has a shorter track record than we’d like
(it launched in mid 2015). But the fund has
an experienced manager, an average annual
fee and risk-adjusted returns that beat the
competition over the past one and three
years. WCM Focused Emerging Markets has
an impressive record, too. If only its 1.50%
expense ratio were a little lower.

A slower-growing Chinese economy, a trade
war and an on-and-off stock market didn’t
hamper funds that focus on China shares. We
like Matthews China Investor. The ride can be
bumpy with this fund, but it has outpaced its
rivals and the MSCI China index over the past
three years. You can lower volatility and earn
better risk-adjusted returns with a fund that
invests across Asia. Matthews Asia Innova-
tors Investor holds hefty slugs of tech and
financial stocks; China, India, South Korea
and Taiwan are its biggest country exposures.
Investors looking for a solid Japan-focused
fund should consider Hennessy Japan Small
Cap, which focuses on small firms with clean
balance sheets, above-average earnings
growth that is sustainable and predictable,
and strong cash flow.

DIVERSIFIED EMERGING-

MARKETS FUNDS
Charging into 2020.

REGIONAL AND SINGLE-

COUNTRY FUNDS

China, China, China.

1. Artisan Developing World Inv 41.7%


2. Invesco Emerging Markets Select Equity A 37.5


3. WCM Focused Emerging Markets Inv 37.4


4. Driehaus Emerging Markets Small Cap Gr 33.7


5. Fidelity Emerging Markets 33.7


6. JPMorgan Emerging Markets Equity A 31.6


7. Columbia Emerging Markets A 30.8


8. Ashmore Emerging Markets Equity A 30.3


9. PGIM Jennison Emerging Markets Eq Opps A 30.0


10. Invesco Developing Markets A 30.0
    CATEGORY AVERAGE 20.7%


11. Voya Russia A 47.8%


12. Columbia Acorn European A 46.0


13. Morgan Stanley Inst Asia Opp A 44.2


14. Fidelity Latin America 40.6


15. AB All China Equity A 37.1


16. Oberweis China Opportunities 36.3


17. DWS Latin America Equity A 35.6


18. Matthews China Small Companies 35.4


19. Fidelity China Region 35.1


20. Matthews China Inv 34.6
    CATEGORY AVERAGE 24.0%


21. WCM Focused Emerging Markets Inv 9.1%


22. Fidelity Emerging Markets 8.5


23. T. Rowe Price Emerging Markets Stock* 8.5


24. Invesco Emerging Markets Select Equity A 8.3


25. JPMorgan Emerging Markets Equity A 8.2


26. Ashmore Emerging Markets Equity A 8.0


27. Delaware Emerging Markets A 8.0


28. Calvert Emerging Markets Equity A 7.9


29. American Funds New World A 7.7


30. Goldman Sachs Emerging Markets Eq A 7.7
    CATEGORY AVERAGE 5.0%


31. Voya Russia A 17.8%


32. Hennessy Japan Small Cap Inv 13.7


33. T. Rowe Price Japan 13.5


34. Hennessy Japan Inv 12.8


35. Matthews China Small Companies 11.8


36. Timothy Plan Israel Common Values A 11.6


37. Fidelity Japan Smaller Companies 11.5


38. Wasatch Emerging India Inv 11.4


39. Fidelity Pacific Basin 10.6


40. T. Rowe Price Asia Opportunities 10.6
    CATEGORY AVERAGE 2.0%


41. WCM Focused Emerging Markets Inv 19.1%


42. Fidelity Emerging Markets 17.4


43. Artisan Developing World Inv 17.3


44. BlackRock Emerging Mkts Eq Strats Inv A 17.1


45. Mirae Asset Emerg Mkts Great Consumer A 17.0


46. BlackRock Emerging Mkts Inv A 16.7


47. Ashmore Emerging Markets Equity A 16.3


48. JPMorgan Emerging Markets Equity A 16.2


49. Invesco Emerging Markets Select Equity A 16.1


50. Wasatch Emerging Markets Select Inv 16.0
    CATEGORY AVERAGE 10.9%


51. Morgan Stanley Inst Asia Opp A 29.8%


52. DWS Latin America Equity A 20.3


53. Matthews China Small Companies 19.7


54. Neuberger Berman Greater China Eq A* 19.5


55. Columbia Greater China A 19.4


56. Fidelity China Region 19.2


57. Matthews China Inv 19.0


58. Eaton Vance Greater China Growth A 18.3


59. Wasatch Emerging India Inv 18.2


60. Fidelity Latin America 18.0
    CATEGORY AVERAGE 11.9%


61. Thornburg Developing World A 6.9%


62. Wasatch Emerging Markets Small Cap Inv 6.5


63. American Funds New World A 6.3


64. Driehaus Emerging Markets Growth Inv 6.2


65. Virtus Vontobel Emerging Markets Opps A 6.1


66. VanEck Emerging Markets A 5.8


67. Invesco Oppenheimer Developing Mkts A* 5.7


68. Fidelity Emerging Markets 5.4


69. T. Rowe Price Emerging Markets Stock* 5.3


70. Delaware Emerging Markets A 5.3
    CATEGORY AVERAGE 4.0%


71. Hennessy Japan Small Cap Inv 13.9%


72. Hennessy Japan Inv 12.8


73. Fidelity Pacific Basin 10.9


74. Fidelity Japan Smaller Companies 10.9


75. Matthews Asia Innovators Inv 10.2


76. T. Rowe Price Japan 10.0


77. Matthews Japan Inv 9.8


78. Matthews China Dividend Inv 9.7


79. Fidelity Nordic 9.3


80. Invesco European Small Company A* 9.2
    CATEGORY AVERAGE 5.7%

1 YEAR

1 YEAR

5 YEARS

5 YEARS

3 YEARS

3 YEARS

10 YEARS

10 YEARS

Returns are annualized through December 31, 2019. *Closed to new investors. SOURCE: © 2020 Morningstar Inc.

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