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.
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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.
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Stock Picks of Top Emerging Markets Funds

Top-ranked Emerging Markets Mutual Funds
Top-ranked Emerging Markets Mutual Funds
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.
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Fidelity Advisor Emerging Asia Fund
Fidelity Advisor Emerging Asia Fund
Fidelity Advisor Emerging Asia Fund (FEAAX)

Score: 74.2 out of 100

Bought: China Yuron Food (1068:HK) (pictured), China Mobile (CHL) the world's largest mobile-phone company measured by users

Sold: Seoul-based companies Shinhan Financial Group (SHG) and NCsoft Corp. (036570:KS), which develops and markets multiplayer on-line games.

Top 5 Holdings: Samsung Electronics (05930:KS), China Mobile (CHL), Taiwan Semiconductor (TSM), China Construction Bank (939:HK)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 31, 2010. The model used to create a score equally weights 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.
China Yurun Food Group Ltd.
Invesco Developing Markets Fund
Invesco Developing Markets Fund
Invesco Developing Markets Fund (GTDDX)

Score: 65.3 out of 100

Bought: Hong Kong-based Lee & Man Paper Manufacturing (pictured), whose website notes that the company expects its production capacity to rise in 2011 to 4.18 million tons of paper and 300,000 tons of pulp

Sold: Centamin Egypt (CELTF), a mining exploration company that prospects primarily for gold, and Indonesian company Astra International (ASII:IJ), which has operations ranging from coal mining to automotive retailing

Top 5 Holdings: AIM Premier Portfolio (IPPXX), AIM Short Term Investment Trust Liquid Assets Portfolio (LAPXX), Banco Bradesco (BBD), SM Investments (SM:PM), Industrial & Commercial Bank of China (Asia) (349:HK)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
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Wasatch Emerging Markets Small Cap
Wasatch Emerging Markets Small Cap
Wasatch Emerging Markets Small Cap Fund (WAEMX)

Score: 59.8 out of 100

Bought: Cyprus-based Globaltrans Investment, which offers rail freight transportation services in Russia (pictured) and other countries, and Brazilian company Marcopolo (POMO3:BZ), which makes bodies for trucks, luxury coaches, and city buses

Sold: Pretoria Portland Cement; China's Shandong Weigao Group Medical Polymer (1066:HK), which makes syringes and catheters, was trimmed.

Top 5 Holdings: LIC Housing Finance (LICHF:IN), Mr. Price Group (MPC:SJ), Bata India (BATA:IN), Exide Industries (EXID:IN), Mahindra & Mahindra (MM:IN)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Globaltrans Investment PLC
RS Emerging Markets Fund
RS Emerging Markets Fund
RS Emerging Markets Fund (GBEMX)

Bought: Dubai-based Dragon Oil (DGO:LN), whose operations are primarily located in Turkmenistan

Sold: The fund trimmed shares in OGX Petroleo e Gas Participacoes (OGXP3:BZ), as well as Jakarta-based Astra International (ASII:IJ), which has automotive and mining businesses, among others

Top 5 Holdings: Samsung Electronics (05930:KS), iShares MSCI Emerging Markets Index (EEM), OGX Petroleo e Gas Participacoes (OGXP3:BZ), Cairn Energy (CNE:LN), Dragon Oil (DGO:LN)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
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Russell Emerging Markets Fund
Russell Emerging Markets Fund
Russell Emerging Markets Fund (REMSX)

Score: 54.4 out of 100

Bought: Montenegro-based Luka Kotor AD Kotor, which provides port services in domestic and international marine transportation (pictured), and Bangkok-based PTT (PTTEP:TB), a state-controlled integrated oil and gas company

Sold: The fund trimmed its top holding, Genesis Smaller Companies—a Luxembourg-based investment similar to a U.S. mutual fund

Top 5 Holdings: Genesis Smaller Companies, Samsung Electronics (05930:KS), Gazprom (OGZPY)), Lukoil (LUKOY), America Movil (AMX)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Luka Kotor
Aberdeen Emerging Markets Fund
Aberdeen Emerging Markets Fund
Aberdeen Emerging Markets Fund (GEGAX)

Score: 53.5 out of 100

Bought: Hong Kong-based AIA Group, an insurance and financial services company. The fund also upped its stake in Taiwan Semiconductor (TSM)

Sold: Israeli company Teva Pharmaceutical Industries (TEVA) was trimmed

Top 5 Holdings: Vale (VALE), Samsung Electronics (05930:KS), China Mobile (CHL), Petroleo Brasiliero (PBR), Taiwan Semiconductor (TSM) (pictured)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 29, 2010. The model used to create a score equally weights 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.
Taiwan Semiconductor Manufactoring Company Limited
Driehaus Emerging Markets Growth Fund
Driehaus Emerging Markets Growth Fund
Driehaus Emerging Markets Growth Fund (DREGX)

Score: 53.2 out of 100

Bought: Banco do Brasil (BBAS3:BZ). The fund also added to a stake in SKS Microfinance (SKSM:IN) (pictured, SKS’s entry onto the Mumbai Stock Exchange), which lends to poor women, primarily in rural India

Sold: Korea's Shinhan Financial Group (SHG), China's Anhui Conch Cement (600585:CH), and Israel's Teva Pharmaceutical Industries (TEVA) left the portfolio

Top 5 Holdings: OGX Petroleo e Gas Participacoes (OGXP3:BZ), SKS Microfinance (SKSM:IN), Vale (VALE), Banco do Brasil (BBAS3:BZ), Pacific Rubiales Energy (PRE:CN)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Sept. 30, 2010. The model used to create a score equally weights 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.
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Delaware Emerging Markets Fund
Delaware Emerging Markets Fund
Delaware Emerging Markets Fund (DEMAX)

Score: 53 out of 100

Bought: Turkish construction company Torunlar Gayrimenkul Yatirim Ortakligi (TRGYO:TI) (pictured)

Sold: Chinese advertising network Focus Media Holding (FMCN) and Sinopec Shanghai Petrochemical (600688:CH) were cut

Top 5 Holdings: Yahoo! (YHOO), China Mobile (CHL), Vale (VALE), Gazprom (OGZPY), Petroleo Brasiliero (PBR)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 29, 2010. The model used to create a score equally weights 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.
Torunlar Reic
BNY Mellon Emerging Markets Fund
BNY Mellon Emerging Markets Fund
BNY Mellon Emerging Markets Fund (MEMKX)

Score: 52.7 out of 100

Bought: Ankara-based Turk Telekomunikasyon (TTKOM:TI) (pictured), South African bank holding company Nedbank Group (NED:SJ), and Brazilian steelmaker Gerdau (GGB)

Sold: Brazilian software maker Totvs (TOTS3:BZ) and Israeli agricultural chemical manufacturer Makhteshim Agan Industries (MAIN:IT)

Top 5 Holdings: Samsung Electronics (05930:KS), iShares MSCI Emerging Markets Index (EEM), Gazprom (OGZPY), China Mobile (CHL), Vale (VALE)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 31, 2010. The model used to create a score equally weights 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.
Turk Telekom
Van Eck Emerging Markets Fund
Van Eck Emerging Markets Fund
Van Eck Emerging Markets Fund (GBFAX)

Score: 51.8 out of 100

Bought: China’s Jiangxi Copper (600362:CH), Korea’s Hyundai Department Store (069960:KS)

Sold: Jakarta’s Bank Tabungan Negara (BBTN:IJ), Peruvian financial services company Credicorp (BAP:PE)

Top 5 Holdings: Vale (VALE), Hyundai Mobis (012330:KS), Tencent Holdings (700:HK) (pictured, Tencent's IM messaging service logo), SJM Holdings (025530:KS), Localiza Rent a Car (RENT3:BZ)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Tencent Holdings
Dreyfus Emerging Markets Fund
Dreyfus Emerging Markets Fund
Dreyfus Emerging Markets Fund (DRFMX)

Score: 51.1 out of 100

Bought: Seoul-based Hite Brewery (103150:KS) (pictured) was increased; Taiwanese company Siliconware Precision Industries (SPIL) was a new buy

Sold: Israeli agricultural chemical manufacturer Makhteshim Agan Industries (MAIN:IT), South African financial service company FirstRand (FSR:SJ)

Top 5 Holdings: Gazprom (OGZPY), iShares MSCI Emerging Markets Index (EEM), Samsung Electronics (05930:KS), Petroleo Brasiliero (PBR), Standard Bank Group (SBK:SJ)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Sept. 30, 2010. The model used to create a score equally weights 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.
Hite Brewery
American Funds - New World Fund
American Funds - New World Fund
American Funds - New World Fund (NEWFX)

Score: 45.6 out of 100

Bought: South African company Shoprite Holdings (SHP:SJ) (pictured), whose subsidiaries include supermarket and furniture retailing operations

Sold: Peruvian financial services company Credicorp (BAP) and Islamabad-based Oil & Gas Development Co., which explores and develops oil and natural gas properties in Pakistan

Top 5 Holdings: America Movil (AMX), Nestlé (NSRGY), Turkcell Iletisim Hizmetleri (TKC), Pharmstandard (PHST:RU), Anheuser-Busch InBev (BUD)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Bloomberg
Columbia Emerging Markets Opportunity Fund
Columbia Emerging Markets Opportunity Fund
Columbia Emerging Markets Opportunity Fund (IDEAX)

Score: 45.5 out of 100

Bought: India's ICICI Bank (IBN), as well as a stake in Seoul-based LG Chem (051910:KS), a maker of petrochemicals, plastic resins, and engineering plastics

Sold: LG Household & Health Care (051900:KS), Mexican beer maker Grupo Modelo (GMODELOC:MM)

Top 5 Holdings: Vale (VALE), Petroleo Brasiliero (PBR), Samsung Electronics (05930:KS), China Construction Bank (939:HK), Sberbank of Russia (SBER03:RM) (pictured)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 29, 2010. The model used to create a score equally weights 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.
Bloomberg
Harding Loevner Emerging Markets Portfolio
Harding Loevner Emerging Markets Portfolio
Harding Loevner Emerging Markets Portfolio (HLEMX)

Score: 45.5 out of 100

Bought: Brazilian consumer goods-maker Hypermarcas (HYPE3:BZ) (pictured), Hong Kong-based oil and natural gas company CNOOC (CEO)

Sold: China Communications Construction Company (1800:HK), Kuala Lumpur-based Public Bank Berhad

Top 5 Holdings: Hengan International (1044:HK), Vale (VALE), America Movil (AMX), Petroleo Brasiliero (PBR), Samsung Electronics (05930:KS)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Hypermarcas
Columbia Emerging Markets Fund
Columbia Emerging Markets Fund
Columbia Emerging Markets Fund (UMEMX)

Score: 44.3 out of 100

Bought: Hong Kong-based Sun King Power Electronics (580:HK), Singapore-based coal miner Straits Asia Resources (SAR:SP) (pictured)

Sold: Russia's Federal Hydrogenerating (HYDR:RM), oil and gas company Cairn India (CAIR:IN)

Top 5 Holdings: Vale (VALE), Samsung Electronics (05930:KS), Petroleo Brasiliero preferred stock, Itau Unibanco Holding (ITUB), Lukoil (LUKOY)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 31, 2010. The model used to create a score equally weights 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.
Straits Asia
MFS Emerging Markets Equity Fund
MFS Emerging Markets Equity Fund
MFS Emerging Markets Equity Fund (MEMAX)

Score: 42.1 out of 100

Bought: Vienna-based Erste Group Bank(EBS:AV) (pictured), Mexican company Alfa (ALFAA:MM), which has petrochemical, food processing, automotive, and telecommunications businesses

Sold: South Africa-based merchandise retailer MassMart Holdings (MSM:SJ), Bangkok-based PTT Exploration and Production (PTTEP:TB)

Top 5 Holdings: Samsung Electronics (05930:KS), Vale (VALE), Infosys Technologies (INFY), Turkiye Garanti Bankasi (TKGBY), China Construction Bank (939:HK)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 31, 2010. The model used to create a score equally weights 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.
Erste Bank
Legg Mason Batterymarch Emerging Markets
Legg Mason Batterymarch Emerging Markets
Legg Mason Batterymarch Emerging Markets (LMEMX)

Score: 41.6 out of 100

Bought: Agricultural Bank of China (1288:HK), Hong Kong's Comba Telecom Systems (2342:HK), Russian natural gas producer NovaTek (NOTK:RM) (pictured)

Sold: Indonesian cement company Semen Gresik (Persero) (SMGR:IJ)

Top 5 Holdings: Petroleo Brasiliero (PBR), Vale (VALE), Samsung Electronics (05930:KS), Hon Hai Precision Industry (2317:TT), China Mobile (CHL)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Getty Images
T. Rowe Price Emerging Markets Stock Fund
T. Rowe Price Emerging Markets Stock Fund
T. Rowe Price Emerging Markets Stock Fund (PRMSX)

Score: 40.1 out of 100

Bought: Johannesburg-based companies Standard Bank Group (SBK:SJ) and Murray & Roberts Holdings (MUR:SJ), which has operations in the construction, materials, transportation, and engineering industries

Sold: South African communications company MTN Group (MTN:SJ), Seoul-based builder Hyundai Development Company (012630:KS)

Top 5 Holdings: Samsung Electronics (05930:KS), Itau Unibanco (ITUB), America Movil (AMX) (pictured), LG Household & Health (051900:KS), Vale (VALE)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the quarter ending Sept. 30, 2010. The model used to create a score equally weights 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.
Bloomberg
SSgA Emerging Markets Fund
SSgA Emerging Markets Fund
SSgA Emerging Markets Fund (SSEMX)

Score: 39.8 out of 100

Bought: Vanguard Emerging Markets ETF (VWO), Krung Thai Bank (KTBr:TB)

Sold: Brazilian telecom company Vivo Participacoes (VIVO3:BZ)

Top 5 Holdings: Vale (VALE), Samsung Electronics (05930:KS) (pictured), Gazprom (OGZPY), China Mobile (CHL) (pictured), America Movil (AMX)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Sept. 30, 2010. The model used to create a score equally weights 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.
Bloomberg
Principal International Emerging Markets Fund
Principal International Emerging Markets Fund
Principal International Emerging Markets Fund (PRIAX)

Score: 39.4 out of 100

Bought: South African retailer Mr. Price Group (MPC:SJ), Warsaw-based bank Powszechna Kasa Oszczednosci Bank Polski (PKO:PW)

Sold: Seoul-based Hanwha Chemical (009830:KS), Kuala Lumpur-based electricity company Tenaga Nasional Berhad (TNB:MK)

Top 5 Holdings: Vale (VALE), Petroleo Brasiliero (PBR), Samsung Electronics (05930:KS), China Construction Bank (939:HK), Itau Unibanco (ITUB)

Fund holdings analysis is based on the fund's most recently disclosed full portfolio, for the month ending Oct. 31, 2010. The model used to create a score equally weights 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.
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