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Times, they are changing, Is it time to re-balance your emerging market portfolio?
"The BRIC backlash has begun.
The acronym BRIC — coined by Jim O’Neill, chairman of Goldman Sachs Asset Management — stands for Brazil, Russia, India and China. It’s shorthand for both emerging markets and a strategy by which some fund managers invest in them. Goldman sells an actively managed BRIC mutual fund, as does Franklin Templeton. Guggenheim Investments and iShares, likewise, offer exchange-traded funds built around BRIC indexes.
But lately, stock markets in the BRIC countries — the four biggest emerging markets — have gone soft. The MSCI BRIC index lost 2.45 percent, annualized, over the three years through September, while MSCI’s broader emerging-markets index gained 3.13 percent. The Class A shares of Goldman’s BRIC fund lost 0.73 percent, annualized, over the same period, and those of the Templeton fund lost 0.67 percent, Morningstar said.
But lately, even Mr. O’Neill and Goldman have moved beyond his Big Four. His latest emerging-market terms are “MIST” and “N-11.” MIST stands for Mexico, Indonesia, South Korea and Turkey, and N-11 for the next 11 economies surging behind Brazil, Russia, India and China. (The MIST countries are a subset of the N-11.) Goldman judges the MIST countries as the most promising and developed of the N-11, all of which have young, swelling populations and other good conditions for economic growth, Ms. Koch said."