Ivy Pacific Opportunities I (IPOIX)
Expense Ratio: 1.25%
Expected Lifetime Fees: $36,271.73
The Ivy Pacific Opportunities I fund (IPOIX) is a Pacific/Asia ex-Japan Stk fund started on 4/2/2007 and has $614.60 million in assets under management. The current manager has been running Ivy Pacific Opportunities I since 3/21/2004. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.
iShares MSCI Pacific ex-Japan (EPP)
Expense Ratio: 0.50%
Expected Lifetime Fees: $15,685.71
The iShares MSCI Pacific ex-Japan (EPP) is an Exchange Traded Fund. It is a "basket" of securities that index the Pacific/Asia ex-Japan Stk investment strategy and is an alternative to a Pacific/Asia ex-Japan Stk mutual fund. Fees are very low compared to a comparable mutual fund like Ivy Pacific Opportunities I because computers automatically manage the stocks.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|Aberdeen Asia Pac ex-Japan Eq Instl||AAPIX||25.3%||403||1.23%|
|Aberdeen Asia Pac ex-Japan Eq Instl Svc||AAPEX||25.3%||403||1.23%|
|Columbia Asia Pacific ex-Japan Fund Class R5||TAPRX||63.0%||382||0.99%|
|DFA Asia Pacific Small Company I||DFRSX||17.0%||177||0.60%|
|Fidelity Advisor Emerging Asia I||FERIX||119.0%||334||1.10%|
|Fidelity Emerging Asia||FSEAX||115.0%||1,300||0.82%|
|Matthews Asian Growth & Inc Investor||MACSX||16.5%||3,100||1.12%|
|Matthews Asian Growth and Income Fund Institutional Class||MICSX||16.5%||3,100||0.99%|
|Matthews Korea Fund Institutional Class||MIKOX||30.1%||157||1.07%|
|Matthews Korea Investor||MAKOX||30.1%||157||1.18%|
|Matthews Pacific Tiger Fund Institutional Class||MIPTX||10.5%||5,400||0.95%|
|Matthews Pacific Tiger Investor||MAPTX||10.5%||5,400||1.11%|
|T. Rowe Price New Asia||PRASX||68.1%||4,000||0.96%|
Turnover represents how much of a mutual fund's holdings are changed over the course of a year through buying and selling. Active mutual funds have an average turnover rate of about 85%, meaning that funds are turning over nearly all of their holdings every year. A high turnover means you could make lower returns because: 1) buying and selling stocks costs money through commissions and spreads and 2) the fund will distribute yearly capital gains which increases your taxes. Look for funds with turnover rates below 50%. For comparison, ETF turnover rates average around 10% or lower.
Generally, smaller funds do better than larger ones. The more assets in a mutual fund, the lower the chance that it will beat its index. Managers outperform an index by choosing stocks that are undervalued. In order to find these undervalued stocks, the manager has to know more than his competitors to develop an "edge." There are only a finite number of stocks a mutual fund manager can reasonably analyze and actively track to gain such a competitive edge. When the fund has more assets, the manager must analyze large companies because he needs to take larger positions. Large companies are more efficiently priced in the market and it becomes increasingly difficult to get an edge.