Published: May 5, 2009
The
correct answer is
(E.) Templeton Dragon (TDF)
Dr. Mark Mobius, a protégé of the
legendary Sir John Templeton, has
been a foreign investing specialist
for over 40 years. In that time, he
has received some impressive
accolades, notching "Closed-End Fund
Manager of the Year" awards from
both Morningstar and CNBC. According
to Reuters, Mobius ran the No. 1
emerging markets fund in the country
in 1998. Also, Carlson Group named
him one of the Top-10 money managers
of the 20th century.
You don't take home that type of
hardware by accident, and Mobius
also has a staff of two dozen
talented emerging-markets analysts
at his disposal. Together, the team
scours the Chinese market for
companies that are undervalued
relative to long-term earnings
potential -- evaluating competitive
position, raw material costs, profit
margins, government regulation and a
host of other factors.
That research has led to a
hand-picked portfolio of about 70
stocks representing a broad swath of
the Chinese economy, most notably
oil and gas, real estate, commercial
banking, telecom, utilities and
consumer staples. The fund has
already posted a gain of +15% in
this year's recovery, outpacing the
middling returns of most
competitors. And TDF has beaten its
category peers in seven of the past
eight years. Meanwhile, it has
topped the broader MSCI EAFE Index
just as often -- clocking the
benchmark by wide margins of 25% or
greater in three of those years.
The economic meltdown may have
prices depressed around the globe,
but before long, investors will
again be drawn to China's inexorable
transformation into an economic
superpower. And TDS is just one of
several China-focused ETFs on the
market; fund investors have plenty
of ways to participate. That's why
StreetAuthority editor Nathan
Slaughter has evaluated and ranked
China-based ETFs. In the latest
issue of the ETF Authority
newsletter, Nathan discusses his
selection methodology and presents
his custom list of seven superstar
funds offering access to 'A' shares
that would otherwise be off-limits
to U.S. investors. As he notes,
investors have plenty of options --
but China ETF portfolios vary
widely, so be sure to do your
homework. To learn the names of
Nathan's picks, and to learn more
about ETF Authority,
please visit this link.
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