Buying at a discount tempers foreign risk

Article Excerpt

We’ve long advised that investing outside of Canada and the United States can expose you to increased volatility and risk. The sharp downturn in many foreign markets during the current global slowdown proves this. But there are still regions or countries that offer lots of growth potential. We still think that for most investors, the best way to invest in these places is through mutual funds, rather than individual stocks. And you can cut your costs by buying closed-end funds. Here are four foreign closed-end funds that trade on the New York exchange at discounts to their net asset value. All are buys for aggressive investors. CENTRAL EUROPE AND RUSSIA FUND $12.38 (New York symbol CEE; CWA Fund Rating: Speculative) is a closed-end fund that invests mostly in larger cap stocks from Russia and central Europe. The fund’s manager is Deutsche Asset Management. The $314-million fund’s 62 holdings are currently invested in Russia (49%), Poland (16%), Turkey (12%), Czech Republic (12%), Hungary (4%),…

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