Re: Emerging Markets Bond Fund

[porcupine]

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!

- Porcupine

[wesleymouch]

Emerging market bond funds appear to have had quite a run lately and are overpriced.

[SpringMan]

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%.

[DaveS]

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

[Cuzz35]

T. Row price's PREMX. Still up there at .94.

[SKILV]

PCY has an ER of .50

[johnep]

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.

[SpringMan]

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.

[Angst]

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.

[nisiprius]

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).

[Phineas J. Whoopee]

... 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!



PJW