This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Matthews Asia Pacific Equity Income (MAPIX) is my top no-load fund pick for 2009," says leading mutual fund expert Mark Salzinger.
In his The No-Load Fund Investor, the advisor explains, "Though most investors do not associate Pacific-Rim investments with high-dividend yields, this $80-million fund could change their perception.
"Matthews Asia Pacific Equity Income was recently offering investors a dividend yield of approximately 5%.
"Managers Jesper Madsen and Andrew Foster seek to fill this fund with dividend-paying stocks of companies throughout the Asia-Pacific region, including Japan, China/Hong Kong, Taiwan and recently at least eight other Asian countries.
"Though dividends have not protected investors in American stocks from the carnage so far in 2008, they appear to have reduced losses for investors in Asian equities.
"Asia Pacific Equity Income fell only 28.1% year-to-date through December 26, 2008, vs. 43.2% on average for the funds in Morningstar's Diversified Pacific Stock category.
"The Matthews funds specialize in attempting to form portfolios of 'indexes of the future' in Asian markets. In other words, they seek exposure to publicly traded companies in sufficient quantities to represent a picture of Asian economies as they are likely to develop over time, not as some index developer imagined them to be several years ago.
"So, compared to existing indexes of Asian stock markets, the Matthews funds tend to devote more of their assets to consumer stocks and midsize and small-cap companies, and less to big exporters and other famous companies.
"This has worked to the benefit of the Asia Pacific Equity Income fund in 2008 as some export markets have shriveled. Also, because most Asian countries are significant net commodities importers, the region will benefit in 2009 from much lower prices for oil, iron ore, copper and other commodities.
"The prices of such products have fallen in some cases by three quarters since their tops in April, benefiting Asian producers and consumers and/or government finances in the region."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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