This Emerging-Markets Fund Wins Big with Small Companies

The managers of Wasatch Emerging Markets Small Cap fund find opportunities to benefit from the growing middle class abroad.

While the developed world’s economies putter along, those of emerging markets zoom ahead. Deutsche Bank recently estimated that the gross domestic product of developing nations will increase 30% by the end of 2012 compared with just 5% for developed markets. By 2014, it said, emerging markets will account for 40% of the world’s GDP, up from 22% in 2000.

A sense that emerging nations have put the recession well behind them has fueled a robust advance in the group’s shares. From the time most global stock markets bottomed on March 9, 2009, through July 29 of this year, Standard & Poor’s 500-stock index leaped an impressive 68%. But over the same period, the MSCI Emerging Markets index roared ahead 113%.

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Stacy Rapacon
Online Editor,

Rapacon joined Kiplinger in October 2007 as a reporter with Kiplinger's Personal Finance magazine and became an online editor for in June 2010. She previously served as editor of the "Starting Out" column, focusing on personal finance advice for people in their twenties and thirties.

Before joining Kiplinger, Rapacon worked as a senior research associate at b2b publishing house Judy Diamond Associates. She holds a B.A. degree in English from the George Washington University.