According to InvestmentNews there could be a lot of people looking for new ways to get exposure to emerging markets in the near future as three of the five largest actively managed emerging-markets funds have either closed to new investors or announced they will soon do so:
The $33 billion Oppenheimer Developing Markets Fund (ODMAX), the largest actively managed emerging-markets fund, announced last week it will close to new investors in April. Spokeswoman Kaitlyn Downing said the closing will help position the fund for continued long-term growth.
It joins the $10 billion Aberdeen Emerging Markets Fund (GEGAX) and the $8.3 billion Virtus Emerging Markets Opportunities Fund (HEMZX), the fourth and fifth largest such funds, in closing to new investors this year.
The $16 billion Lazard Emerging Markets Fund (LZEMX), the third largest actively managed emerging markets fund closed to new investors in 2010.
It might make sense for investors to consider using the PowerShares DWA Emerging Markets Technical Leaders ETF (PIE) as an alternative. From a performance perspective, it stacks up nicely against the funds listed in the article.
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PIE is the second best performer since March 9, 2009 and is by far the best performer YTD.
Allocations to emerging markets are only expected to expand in the coming years:
The infatuation with the emerging markets, and their fast-growing economies, isn’t expected to slow down anytime soon. A majority of advisers — 51.4% — plan to increase their clients’ allocation to emerging-markets equity this year, according to the InvestmentNews 2013 Investment Outlook survey, in which 592 financial advisers participated.
Please see www.powershares.com for more information about PIE. Past performance is no guarantee of future returns.
