Re: Emerging Markets Bond Fund

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Re: Emerging Markets Bond Fund

Postby porcupine » Mon Jan 28, 2013 11:33 am

Could you please suggest an alternative for PYEMX, preferably in the same category (or same corner of the investment matrix)? This one has nearly 1% ER!

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Re: Emerging Markets Bond Fund

Postby wesleymouch » Mon Jan 28, 2013 11:38 am

Emerging market bond funds appear to have had quite a run lately and are overpriced.
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Re: Emerging Markets Bond Fund

Postby SpringMan » Mon Jan 28, 2013 12:31 pm

Fidelity has one, FNMIX, Fidelity New Markets Income, with an expense ratio .87%.

edit: Correction added. I originally had an incorrect expense ratio of .83%. The correct expense ratio is .87%.
Last edited by SpringMan on Tue Jan 29, 2013 10:11 am, edited 1 time in total.
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Re: Emerging Markets Bond Fund

Postby DaveS » Mon Jan 28, 2013 11:26 pm

In ETF's take a look at EMLC, and and ELD. You don't want this kind of debt for you whole bond allocation, but it's OK to dabble in it. Dave
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Re: Emerging Markets Bond Fund

Postby Cuzz35 » Tue Jan 29, 2013 12:05 am

T. Row price's PREMX. Still up there at .94.
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Re: Emerging Markets Bond Fund

Postby SKILV » Tue Jan 29, 2013 2:14 am

PCY has an ER of .50
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Re: Emerging Markets Bond Fund

Postby johnep » Tue Jan 29, 2013 9:35 am

FNMIX has .87% ER, nearly identical to fund cited. It is a well regarded and hedges its currency if that matters. The ER will be higher in this class of investing. However, I own a small position in the etf ELD which is also highly regarded by M* and has ER of .55%. I attended a Fidelity investment briefing yesterday and they said that EM debt was the best investment opportunity in fixed income right now. Obviously not a core holding, but maybe worth a small allocation.
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Re: Emerging Markets Bond Fund

Postby SpringMan » Tue Jan 29, 2013 10:14 am

johnep wrote:FNMIX has .87% ER, nearly identical to fund cited. It is a well regarded and hedges its currency if that matters. The ER will be higher in this class of investing.

You are correct regarding the .87% expense ratio of FNMIX. I edited my earlier post to reflect this.
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Re: Emerging Markets Bond Fund

Postby Angst » Tue Jan 29, 2013 11:04 am

If you can wait until March, Vanguard's Emerging Markets Bond Fund might be out then. Not sure if it will suit your needs.

http://www.bogleheads.org/forum/viewtopic.php?f=10&t=96347&start=50#p1518383

It's interesting to note that Vanguard seems to have buried all the original news announcements that described these two funds, at least when I search I now can't pull them up, even using the old links I had. Makes me wonder.
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Re: Emerging Markets Bond Fund

Postby nisiprius » Tue Jan 29, 2013 11:40 am

Note that Vanguard's emerging markets bond fund, according to the preliminary prospectus, "seeks to track the performance of a benchmark index that measures the investment return of U.S. dollar-denominated bonds issued by governments of emerging market countries. "Credit risk should be moderate for the Fund because it purchases investment-grade and high-yield bonds."

So, all international bond investors need to decide whether they

a) merely want to diversify globally across differences in interest rates and government policies, and prefer not to take currency risk if they don't need to, or whether they

b) are convinced the dollar is going to weaken again and want to do currency speculation, but would like some bond interest with their currency speculation.

Vanguard's fund, if ever launched, would be interesting to those in category (a).
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Re: Emerging Markets Bond Fund

Postby Phineas J. Whoopee » Wed Jan 30, 2013 8:04 pm

nisiprius wrote:... b) are convinced the dollar is going to weaken again and want to do currency speculation, but would like some bond interest with their currency speculation. ...

Excellent point nisiprius.

Thinking about it further, if the dollar strengthened I would redirect all the money I save on imported goods to investments, thereby making money.

If the dollar weakened I would make lots of money from all the export business my 60% of equities US slice would do.

Seems like the only bad scenario for me would be a steady dollar!

:greedy

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