These are the top ten emerging-markets local-currency bonds

Investing in emerging markets is always a good option. It not only helps diversify your portfolio but also gives you a chance to earn higher returns. In addition to investing in emerging markets, you can also diversify your currency holdings by investing in emerging market bonds priced in local currencies. To help you select, here […]
These are the top ten emerging-markets local-currency bonds
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Investing in emerging markets is always a good option. It not only helps diversify your portfolio but also gives you a chance to earn higher returns. In addition to investing in emerging markets, you can also diversify your currency holdings by investing in emerging market bonds priced in local currencies. To help you select, here are the top 10 emerging-markets local-currency bonds.

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Top 10 Emerging-Markets Local-Currency Bonds

We have relied on the past one-year return of these bonds to rank the top ten emerging-markets local-currency bonds. For the past one-year return data of these bonds, we have referred to U.S. News. Here are the top 10 emerging-markets local-currency bonds:

  1. Stone Harbor Local Markets Fund (SHLMX, 14%)

SHLMX invests at least 80% of its assets in emerging markets investments and may invest in securities of any credit rating. It has $163.25 million in assets and an expense ratio of 0.96. SHLMX’s past three-year return is -2.74%, while in the past five years, it has returned 1.95%. Its top two holdings are People's Republic of China 3.13% and the Republic of South Africa.

  1. Payden Emerging Markets Local Bond Fund (PYELX, 15%)

PYELX invests a minimum of 80% of its assets in a wide variety of bonds. It has $90.99 million in assets and an expense ratio of 0.93. PYELX’s past three-year return is -1.98%, while in the past five years, it has returned 2.68%. Its top two holdings are Payden Cash Reserves Money Market and People's Republic of China 2.85%.

  1. Eaton Vance Emerging Markets Local IncFd (EEIAX, 15%)

During normal times, EEIAX invests in securities, derivatives and other instruments that offer exposure to emerging markets. It has $1.54 billion in assets and an expense ratio of 1.20. EEIAX’s past three-year return is 1.38%, while in the past five years; it has returned 5.27%.

  1. Goldman Sachs Local Emerg Mkts Dbt Fd (GAMDX, 16%)

GAMDX normally invests in sovereign and corporate debt securities from emerging market issuers and other instruments, such as credit-linked notes. It has $78.17 million in assets and an expense ratio of 1.22. GAMDX’s past three-year return is -2.94%, while in the past five years, it has returned 2.04%. Its top two holdings are Kingdom of Thailand 3.78% and the Agricultural Development Bank of China 2.96%.

  1. T. Rowe Price Emerging Mkts LclCcy Bd Fd (PRELX, 16%)

PRELX usually invests in local-currency emerging-markets bonds and related derivative instruments. It has $470.83 million in assets and an expense ratio of 0.95. PRELX’s past three-year return is -1.09%, while in the past five years, it has returned 3.4%. Its top two holdings are Republic of Indonesia 8.75% and the Russian Federation 6.9%.

  1. MFS Emerging Markets Debt Local Ccy Fd (EMLAX, 17%)

EMLAX normally invests in debt instruments related to emerging market countries and instruments with similar economic characteristics. It has $409.98 million in assets and an expense ratio of 1.10. EMLAX’s past three-year return is -0.54%, while in the past five years, it has returned 3.31%. Its top two holdings are Republic of South Africa 8% and Republic of Indonesia 7%.

  1. PGIM Emerging Markets Debt Lcl Ccy Fd (EMDAX, 18%)

During normal times, EMDAX invests at least 80% of its assets in the currencies and fixed-income instruments (in local currency) of emerging market countries. It has $67.41 million in assets and an expense ratio of 1.13. EMDAX’s past three-year return is -1.06%, while in the past five years, it has returned 2.84%. Its top two holdings are People's Republic of China 2.85% and Republic of South Africa 10.5%.

  1. Ivy Pictet Emerging Mkts Lcl Ccy Dbt Fd (IECAX, 18%)

IECAX normally invests a minimum of 80% of its net assets in the debt securities of  emerging markets and in derivative instruments related to such securities. It has $68.26 million in assets and an expense ratio of 1.2. IECAX’s past three-year return is -1.78%, while in the past five years, it has returned 1.07%. Its top two holdings are State Street Instl US Govt MMkt Premi and People's Republic Of China 2.36%.

  1. Hartford Emerging Mkts Lcl Dbt Fund (HLDAX, 18%)

HLDAX usually invests at least 80% of its assets in emerging markets debt securities, forwards and other derivative instruments. It has $67.43 million in assets and an expense ratio of 1.18. HLDAX’s past three-year return is -1.14%, while in the past five years, it has returned 3.24%. Its top three holdings are U.S. 10yr Note (Cbt) Jun21, U.S. 5yr Note (Cbt) Jun21 and Euro-Bobl Future Mar21.

  1. PIMCO Emerging Markets Lcl Ccy and Bd Fd (PELAX, 18%)

PELAX invests in many global emerging markets. About 60% of its holdings are in investment-grade instruments, but the majority of those are at the lower end of the investment-grade scale. It has $1.36 billion in assets and an expense ratio of 2.1. PELAX’s past three-year return is -1.09%, while in the past five years, it has returned 3.26%. Its top three holdings are Secretaria Tesouro Nacional 0%, Deutsche Bank AG London, and JPMorgan Chase Bank.

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