As investors pour money into emerging markets funds, fund managers are scouring economies from Johannesburg to Jakarta to sniff out opportunities. To find where managers with strong track records of balancing returns with risks have placed money, Bloomberg Rankings screened actively managed emerging markets mutual funds with assets of over $100 million. The Bloomberg ranking equally weighted five criteria: total returns for one, three, and five years and Sharpe ratios—which show how well a fund's returns compensate investors for the risk taken—for three and five years. The highest possible score was 100.
Many funds share core holdings that include large-cap stocks such as Korea's Samsung Electronics (005930:KS
) and Brazilian mining company Vale (VALE
). Sifting through the full list of portfolio holdings provided to Bloomberg by funds on a monthly or quarterly basis reveals buys and sells that range from banks in Poland to beer makers in Mexico and microfinance companies in India. Only funds with portfolios dated Sept. 30 or later were analyzed; a few purchases and sales from each fund are highlighted.