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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.
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
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.
Fidelity Overseas Joins the 500
Changes to the 500
|
Russel Kinnel
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
´
•
Fidelity Advisor Mid Cap II A
‰
´
Manning &Napier Pr-Bd Cnsrv Trm
´
Œ
Manning &Napier Pr-Bd Extnd Trm
´
Œ
Manning & Napier Pr-Bd Mod Trm
´
Œ
Manning & Napier Equity
´
Œ
Manning & Napier World Opp A
´
Œ
PIMCO Emerging Local Bond Instl
´
•
Under Review
To
From
Columbia Acorn International
•
ˆ
Columbia Acorn International Select
•
ˆ
Columbia Acorn Select
‰
ˆ
Columbia Acorn
‰
ˆ
Columbia Acorn USA
´ ˆ