Driehaus Emerging Markets Growth
As mentioned before, a key pull for emerging-market investors is the growth potential, and while the past year has been weak, the long-term still looks promising — especially as industrialization continues and these countries’ populations get wealthier.
One way to capitalize on the trend is the Driehaus Emerging Markets Growth (MUTF:DREGX) fund, which has $843 million in assets. The portfolio managers — Howard Schwab and Chad Cleaver — have extensive backgrounds in emerging markets and a knack for finding under-the-radar companies.
Like VEIEX, the Driehaus fund has heavy weights in Brazil, China and South Korea — top holdings include Samsung, China Mobile and Kia Motors — but the managers also have a wide scope. For example, the fund recently has been buying up companies in the Philippines, which has strong credit expansion and is benefiting from substantial infrastructure investments.
DREGX has struggled in the past year, losing 7%; plus fees of 1.64% are high, and it requires a large minimum investment of $10,000. However, DREGX has fantastic 10-year annual returns of more than 17%, and it boasts a Morningstar 5-star rating.