From early 2002 until mid-2006, we rated Asian funds a (Interesting - should outperform the market over the next 1 to 3 years). After investors began investing in emerging markets with somewhat irrational exuberance, we downgraded this category to a (Neutral) in 2006. In the fall of 2007, after a very hot 12-month span, we finally went with a negative rating (Weak - should underperform the market) in our most recent favorite funds ratings update. Now, at the end of 2007, we’re giving the Asian offerings our lowest rating of (Least attractive).
There are many signs that the best days are now behind us in this category. Four of our five favorite Asian funds have accumulated over $4 billion dollars in assets. Fidelity Southeast Asia (FSEAX) was up roughly 60% for the year at the end of November in spite of an 11% drop in November. Its five year annualized return is just over 35%. T. Rowe Price Asia (PRASX) posted similar returns. ...read the rest of this article»
Focus On: Asia Funds
From early 2002 until mid-2006, we rated Asian funds a
(Interesting - should outperform the market over the next 1 to 3 years). After investors began investing in emerging markets with somewhat irrational exuberance, we downgraded this category to a 
(Neutral) in 2006. In the fall of 2007, after a very hot 12-month span, we finally went with a negative 
rating (Weak - should underperform the market) in our most recent favorite funds ratings update. Now, at the end of 2007, we’re giving the Asian offerings our lowest rating of 
(Least attractive).
There are many signs that the best days are now behind us in this category. Four of our five favorite Asian funds have accumulated over $4 billion dollars in assets. Fidelity Southeast Asia (FSEAX) was up roughly 60% for the year at the end of November in spite of an 11% drop in November. Its five year annualized return is just over 35%. T. Rowe Price Asia (PRASX) posted similar returns. ...read the rest of this article»