These Top Emerging Market Funds All Over The Map

The top-performing emerging-market stock and bond mutual funds of the past 10 years are having varying degrees of success this year. Top bond mutual funds are generally holding up better. (See the accompanying table.)

The average diversified emerging-market stock mutual fund tracked by Morningstar Inc. has returned an average annual 5.20% the past 10 years vs. 3.88% for the average emerging-market bond fund and 7.79% for the S&P 500.

This year emerging market stock funds have handed investors a decline of 8%, their bond counterparts are down 2.51% and the S&P 500 is off 0.42%.

Virtus Emerging Markets Opportunities Fund has risen an annual average of 8.43% in the past 10 years and is down 5% this year. Nearly 52% of the fund’s $ 10.1 billion in assets are in emerging Asian markets, 19% in Latin America and 13% in developed Asia.

The fund has been managed by Rajiv Jain since 2006.

By sector, the fund’s biggest chunk of assets is in financial services, which is in line with its emerging-market benchmark. Its biggest overweighting is in consumer defensive stocks with 33% of assets vs. 8% for the benchmark. The biggest underweightings are 1% in energy vs. the benchmark’s 7% and 0% in industrials to the benchmark’s 6%.

Recent top holdings include British American Tobacco, at about 6% of assets, Housing Development Finance of India at 5% and Brazil-based Ambev (NYSE:ABEV) at 4%.

Follow Doug Rogers on Twitter: @IBD_DRogers.

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