The Dreyfus Emerging Markets Fund
Fund literature of the Dreyfus Emerging Markets Fund states that in order to pursue its objective of attaining long-term capital growth, the fund would invest at least four-fifth of its assets “in the stocks of companies organized, or with a majority of assets or business, in emerging market countries.”
The fund has been in existence since June 1996 and thus, has been witness to several market cycles. As of the end of November 2016, it had been managing assets worth $125 million. Meanwhile, as of November-end it had a total of 127 holdings in its portfolio. The fund is managed by Warren Skillman.
The Dreyfus Emerging Markets Fund – Class A (DRFMX) is up by 21% in the YTD period until December 12. However, its performance has taken a hit in the past three months with returns in the negative territory.
Sectoral and geographic breakdown
Looking at the sectoral composition of the fund, financials is the most invested sector; it commands nearly 30% of the assets. The information technology sector is a distant second, followed by industrials. These three sectors combine to form 56% of the fund’s portfolio. Materials and consumer discretionary round-off the top five invested sectors.
Securities from China form 18.5% of the portfolio and make the country the largest investment destination for the DRFMX. South Korea and Hong Kong follow, making up a combined 29% of the assets. India and Brazil, in that order, round-off the top five invested countries.
South Korea’s consumer electronics giant Samsung Electronics Co. is the most invested company. Three Chinese companies find their stocks among the top five holdings of the DRFMX: Industrial and Commercial Bank of China Limited (IDCBY), China Construction Bank Corporation (CICHY), and China Mobile Limited (CHL). Hong Kong-based shipping company COSCO SHIPPING Ports Ltd., earlier known as COSCO Pacific Limited, is the fifth largest invested firm.
Fees and minimums
You’d require a minimum initial investment of $1,000 to invest in the DRFMX. The minimum additional investment is $100. The fund house can charge a maximum sales charge of 5.75% of the offering price. It will also charge a redemption fee of 2% of the amount redeemed if investments are liquidated within 60 days of purchase. The fund is quite expensive. Including a management fee of 1.25%, and a waiver of 0.2%, the net expense ratio of the Dreyfus Emerging Markets Fund – Class A (DRFMX) is 2%.
Let’s look at the PIMCO RAE Fundamental PLUS EMG Fund – Class A (PEFFX) in the next article. This fund is different from all others detailed in this series.