U.S. investors are missing what we think are the most compelling opportunities in India—smaller companies.
Salt Lake City, UT (PRWEB) April 26, 2011
Wasatch Funds announced today’s launch of the Wasatch Emerging India Fund (WAINX). "We believe there will be tremendous investment opportunities in India over the next decade,” said portfolio manager Ajay Krishnan. “India is a $4 trillion economy that is expected to grow at roughly 8% per year over the next five years. Wasatch has been investing in India for 10+ years and we will leverage our India experience in this new fund.”
Said co-portfolio manager and Director of International Research Roger Edgley, “India has a rapidly growing middle class and an abundance of small, high-quality companies, including over 300 IPOs in the last five years.” We are comfortable focusing on just India because we believe the quality of company management teams as well as the business infrastructure and regulations are very high in India relative to other emerging countries.”
A hallmark of Wasatch’s search for the “World’s Best Growth Companies” is turning over every rock to find smaller, lesser known companies. The average large cap stock in India has more than 2.5 times as many analysts following it compared to the average small cap stock, and this ratio balloons to 6-to-1 when comparing large cap to micro cap stocks. “U.S. investors are missing what we think are the most compelling opportunities in India—smaller companies,” said Mr. Krishnan.
Wasatch has been investing in small caps stocks for over 35 years and launched its first global fund more than a decade ago. Wasatch currently has three international funds and two global funds, including:
Wasatch International Growth Fund (WAIGX)
Wasatch International Opportunities Fund (WAIOX)
Wasatch Emerging Markets Small Cap Fund (WAEMX)
Wasatch Global Opportunities Fund (WAGOX)
Wasatch World Innovators Fund (WAGTX)
About Wasatch Advisors®
Wasatch Advisors is the investment manager to Wasatch Funds®, a family of no-load mutual funds, as well as separately managed institutional and individual portfolios. Wasatch Advisors pursues a disciplined approach to investing, focused on bottom-up, fundamental analysis to develop a deep understanding of the investment potential of individual companies. The portfolio managers employ a uniquely collaborative process to leverage the knowledge and skill of the entire Wasatch Advisors research team in making investment decisions. Wasatch Advisors is an employee-owned investment adviser founded in 1975 and headquartered in Salt Lake City, Utah.
The objective of the Emerging India Fund is long-term growth of capital. This Fund is new and has limited operating history.
Mutual fund investing involves risks and loss of principal is possible. Investing in small cap funds will be more volatile and loss of principal could be greater than investing in large cap or more diversified funds. Investing in foreign securities, especially in emerging markets, entails special risks, such as unstable currencies, highly volatile securities markets and political and social instability, which are described in more detail in the prospectus. Being non-diversified, WAINX can invest a larger portion of its assets in the stocks of a limited number of companies than a diversified fund. Non-diversification increases the risk of loss to the Fund if the values of these securities decline.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, containing this and other information, visit http://www.wasatchfunds.com or call 800.551.1700. Please read it carefully before investing.
Wasatch Advisors defines the World’s Best Growth Companies (WBGCs)™ as financially strong companies that possess an identifiable, sustainable competitive advantage, are well managed, and we believe are positioned to continue producing above average earnings growth relative to their industry and country of origin.
©2011 Wasatch Funds, All rights reserved. Wasatch Funds are distributed by ALPS Distributors, Inc (ADI). Separately Managed Accounts and related investment advisory services are provided by Wasatch Advisors, a federally regulated Investment Advisor. ADI is not affiliated with Wasatch Advisors. Eric Huefner is a registered representative of ADI. WAS002341 4/26/2012.
i EconomyWatch, March 4, 2011.
ii BSE, data as of 3/9/11 for the period 2006-2010.
iii FactSet, based on MSCI India IMI Index companies as of 3/9/11.