Emerging markets bond funds may appeal to investors with long time horizons and a tolerance for risk. For such investors, holding 5 percent-10 percent of their bond allocation in these funds can add to total returns, over time. Recommended funds include:
All of these companies have deep, experienced research departments. When you invest in emerging markets there are large differences from one country to another so you need a research team to choose among them.
PIMCO, in particular, has an excellent record for actively managing fixed-income investments. What’s more, this research-intensive category has high expenses (averaging over 1.5 percent a year), the highest for any type of bond fund, so the Fidelity fund starts out with an advantage because of its 1 percent expense ratio.