Seeks maximum long-term capital appreciation through investment in companies based in emerging markets.
The Emerging Markets Fund invests, under normal circumstances, at least 80% of its net assets (plus the amount of borrowings, if any) in the securities of companies based in emerging markets. This includes securities of companies based in or whose securities are primarily traded on an emerging market exchange. It also includes those that have at least 50% of their assets in or derive at least 50% of their revenues from business activities in emerging market countries. The Fund generally invests in the stocks of small- and medium-sized companies with a market capitalization of less than $5 billion or within the range of companies in the MSCI Emerging Markets Small-Cap Index, whichever is greater.
The companies selected for the Fund are typically untested and leveraged to the rapid expansion of the underlying region’s economy. Their above-average, long-term growth potential makes them most appealing for long-term investors who can tolerate the volatility associated with seeking maximum capital appreciation.