Wasatch Emerging Markets Small Cap Fund (WAEMX)

This next fund has a unique approach of investing in Emerging Markets companies. This Wasatch Emerging Markets Small Cap is concentrating its assets in small capitalization companies in Emerging Markets. Details about this fund are described below.

Wasatch Emerging Markets Small Cap (MUTF: WAEMX)

                

The Wasatch Emerging Markets Small Cap is seeking long-term capital growth. The fund primarily invests at least 80% of assets in the equity securities (including common stock, preferred stock and securities convertible into common stock) of companies with market capitalizations of less than $3 billion at the time of purchase that are domiciled in emerging market countries.

WAEMX Fund Details

 Wasatch Emerging Markets Small Cap fund 

• Fund Inception Date: October 1, 2007
• Ticker Symbol: WAEMX
• CUSIP: 936793884
• Beta (3yr): 1.17                
• Rank in category (YTD): 31
• Category: Diversified Emerging Markets                 
• Yield: 0.01%
• Net Assets: $702.06 million                         
• Capital Gains: N/A
• Number of Years Up: 2 years       
• Number of Years Down: 1 year

updated on July 21th, 2011

Since its inception (2007), this top emerging markets equity fund has been managed by Roger Edgley and Laura Geritz. This Best rated WAEMX fund has gotten 5-stars return rating from Morningstar. The fund also has a net annual expense ratio of 2.06% which is a bit higher compared to the average in the Diversified Emerging Markets category (1.68%). The yield of 0.01% is almost non existence. As part of no load fund, this Wasatch fund doesn’t have any sales load (i.e. front sales load and deferred sales load).

This top rated Wasatch Emerging Markets Small Cap fund has returned 26.54% over the past one year and 14.10% over the past three years. The best 1-year total return so far was in 2009 with 117.72%. The past 3 years of annual total return:

• Year 2010: 41.22%
• Year 2009: 117.72%
• Year 2008: -57.08%

To start investing in this Wasatch fund, you will need to a minimum initial investment of $2,000 for either regular brokerage account or IRA account. WAEMX can be bought from 60 brokerages such as JP Morgan, T. Rowe Price, Vanguard NTF, Schwab Retail, Ameriprise Brokerage, Raymond James, Firstrade, E Trade Financial, Raymond James, etc. Please check with your mutual fund broker for details. This fund is currently open to all investors.

As of March 2011, the fund consists of 116 holdings. The top ten holdings are Mr Price Group Ltd (2.2%), PT Holcim Indonesia Tbk (2.1%), Colgate-Palmolive India Ltd (1.9%), Mahindra & Mahindra Financials Services Ltd (1.9%), Clicks Group Ltd (1.8%), PT Harum Energy Tbk (1.5%), Bata India Ltd (1.4%), Dah Chong Hong Holdings Ltd (1.4%), Restoque Comercio e Confeccoes de Roupas SA (1.4%) and Tegma Gestao Logistica (1.4%). The top 5 sectors of this fund are consumer cyclical (24.36%), Financial Services (19.5%), Industrials (15.38%), Basic Materials (11.75%), and Consumer Defensive (10.42%). The top 5 regions include Asia (57.6%), Latin America (17%), Eastern Europe (13.2%), Middle East Africa (10.5%), and Western Europe (1%).

Principal investment risks of this Emerging Markets equity fund are:

• Stock market risk
• Stock selection risk
• Foreign securities risk
• Emerging markets risk
• Smaller company stock risk
• Growth stock risk
• Sector weightings risk

Pros:

• Top rated fund by Morningstar
• No sales load

Disclosure: No Position