Skip to Content
Market Update

Warburg Pincus to Merge Emerging-Markets Funds

Soon, Warburg Pincus fans won't have to choose between Warburg Pincus Emerging Markets and Warburg Pincus Emerging Markets II.

Warburg Pincus plans to merge its Emerging Markets II (WEMTX) into Emerging Markets Fund (WPEMX), according to an SEC filing.

The merger would make a lot of sense. For starters, both funds share the same mandate: to invest broadly in the world's emerging markets. Also, Emerging Markets II is tiny. With about $1 million in assets, it's among the smallest mutual funds out there. It's unlikely that Emerging Markets' managers Vincent McBride and Harold Sharon would have any trouble handling an addition of this size.

That said, these are currently different portfolios with different managers. Emerging Markets, for example, tends to go further out on a limb: Its top five countries currently include India and Taiwan, and South Korea consumes almost 15% of assets. Emerging Markets II, on the other hand, looks more like its average peer, with Mexico attracting most of its attention.

The two funds do have one other thing in common: As far as performance goes, neither has been a standout.