(PUB) Investing 2015
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Fidelity Overseas Joins the 500 Changes to the 500 | Russel Kinnel
Two Funds Go Out To make room, I’m dropping TCW International Small Cap, which has been a laggard. Fund manager Rohit Sah was recently replaced by Andrey Glukhov and Ray Prasad.
In addition, I’m dropping Janus Overseas, which has been in a severe slump. K
I am making two changes to our international-equity fund lineup. The disappointing Janus Overseas JAOSX and TCW International Small Cap TGICX are out. In their place are the more promising Fidelity Overseas FOSFX and Matthews Emerging Asia MEASX . ´ -rated Fidelity Overseas has been a revela- tion under Vince Montemaggiore. He’s turned the fund into a core foreign fund that has produced strong risk-adjusted returns. He’s been manager only since January 2012 , so I don’t want to overstate the case. His style was influenced by Warren Buffett, as is apparent from his emphasis on firms with economic moats that are trading at modest prices. He looks for companies with strong balance sheets and sustain- able competitive advantages. High-quality European stocks like Nestle, Roche, and Sanofi dominate the portfolio. See the facing page for more. Matthews Emerging Asia is a name you might remember from Patricia Oey’s piece on frontier markets in the February 2015 issue. The fund casts a wide net around Asia except that it leaves out the more developed markets of Japan, South Korea, Hong Kong, and Singapore. The fund invests in countries you probably don’t have much exposure to, including 15% in Bangladesh, 13% in Pakistan, 10% in Vietnam, and 9% in Indonesia. The fund was launched in 2013 and is run by Robert Harvey and Taizo Ishida. The fund’s 1 . 58% expense ratio makes it a real bargain compared with most frontier-markets funds.
What is Morningstar FundInvestor 500 ? The Morningstar FundInvestor 500 features the industry’s best and most notable funds. Use the list to get new in- vestment ideas and track the funds you already own. FundInvestor subscribers have access to one-page monthly reports on all 500 funds on mfi.morningstar.com. Just type in the name or ticker of the fund in the search box.
Summary of Changes Add
Drop
Fidelity Overseas
Janus Overseas
Matthews Emerging Asia
TCW International Small Cap
Upgrade
To
From
T. Rowe Price Div Sm Cap Growth
•
´
Downgrades
To
From
Artisan Value Investor
´
•
Artisan Small Cap Value Investor
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•
Fidelity Advisor Mid Cap II A
‰
´
Manning &Napier Pr-Bd Cnsrv Trm Manning &Napier Pr-Bd Extnd Trm Manning & Napier Pr-Bd Mod Trm
´
Œ
´
Œ
´
Œ
Manning & Napier Equity
´
Œ
Manning & Napier World Opp A
´
Œ
PIMCO Emerging Local Bond Instl
´
•
Under Review
To
From
Columbia Acorn International
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ˆ
Columbia Acorn International Select •
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Columbia Acorn Select
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ˆ
Columbia Acorn
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ˆ
Columbia Acorn USA
´ ˆ
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