The Wasatch Emerging Markets Small Cap Fund (WAEMX) focuses on investing in small-cap companies across emerging markets, primarily in Asia and Latin America. The fund seeks to capitalize on the growth potential of these markets through a diversified portfolio that emphasizes high-quality companies with strong growth prospects.
WAEMX generates revenue primarily through management fees based on a percentage of AUM, which is typically around 1% annually. The fund's competitive advantage lies in its focus on small-cap companies in emerging markets, which are often overlooked by larger funds, allowing for potentially higher returns as these companies grow.
Changes in AUM driven by market performance and investor inflows/outflows
Emerging market economic indicators, particularly GDP growth rates
Performance of small-cap indices in emerging markets
Regulatory changes affecting investment flows into emerging markets
Regulatory changes in emerging markets that could restrict foreign investment
Economic instability in key markets such as China or Brazil
Increased competition from other funds targeting emerging markets
Market volatility that could lead to significant outflows
Liquidity risk associated with potential large redemptions by investors
Operational risk related to managing a diverse portfolio across multiple geographies
high - the fund's performance is closely tied to the economic health of emerging markets, which are sensitive to global economic cycles.
Rising interest rates can lead to increased borrowing costs for companies within the fund's portfolio, potentially impacting their growth. However, higher rates may also attract more investment into emerging markets as investors seek higher returns.
minimal - the fund is not heavily reliant on credit markets for its operations.
growth - investors looking for high-growth opportunities in emerging markets.
high - emerging markets are generally more volatile, and the fund's focus on small caps adds to this volatility.