T. Rowe Price Em Eur & MediterraneanTREMX

Morningstar Rating

Fund Research and Analysis

by William Samuel Rocco

Already quite aggressive T. Rowe Price Emerging Europe & Mediterranean is slated to become even bolder.

This fund has always been one of the most focused ones in its group. It invests in the emerging markets from two specific regions, while nearly Read more

Kudos

T. Rowe Price's emerging-markets group is deep, experienced, and successful.

Employs the same growth-oriented stock strategy as the three oldest T. Rowe Price emerging-markets offerings have used to produce good long-term results.

Low correlation with the U.S. market makes this a good diversification tool.

Posts huge gains when the areas it favors soars. Read more

Risks

Posted huge losses in the late-2007 to early-2009 global meltdown, and though the manager makes full use of her universe, the fund has a highly concentrated portfolio with big country, sector, and stock bets.

Concentrated nature makes the fund extremely volatile and prone to painful sell-offs.

Israel is slated to be removed from the benchmark in May 2010, and though the manager will continue to invest in that market when there are exceptional opportunities there, the fund is unlikely to own sizable stakes in Israel after that time.

The fund's expense ratio rose considerably between late 2008 and early 2009 due to a decline in its asset base. (The asset base has grown significantly in recent months, though). Read more

Strategy

Leigh Innes (formerly Robertson) and several analysts comb the countries of Eastern Europe, the former Soviet Union, and the Mediterranean (which currently includes Israel as well as Egypt, Greece, Jordan, Read more

Management

Leigh Innes (formerly Robertson) took the reins here in September 2007, succeeding Chris Alderson, who had been the manager since the fund's inception in September 2000. Innes had worked on the fund with Alderson as an analyst since she started with Read more

Inside Scoop

This fund is an exceptionally high-return/high-risk vehicle. Its commitment to the emerging markets of Europe and the Mediterranean comes with significant country, sector, Read more

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