1.   And to avoid overweighting in the riskier emerging markets, the fund bypassed even the respected managers, like Mark Mobius, in that area.

2.   Brady bonds fell, led by Venezuelan bonds, amid concern that U.S. interest rates may soon rise, threatening to draw funds out of riskier emerging markets.

3.   Emerging market debt declined as weaker U.S. stocks underscored investor reluctance to put money into riskier emerging market bonds.

4.   Higher U.S. bond yields can hurt emerging market security prices since they make investors less likely to seek higher returns in riskier foreign markets.

5.   Higher U.S. rates can also deter investors from buying relatively riskier emerging market bonds.

6.   Higher yields on U.S. bonds make riskier emerging market debt less attractive.

7.   Higher bond yields in the U.S. make riskier emerging markets relatively less attractive.

8.   Higher rates in the U.S. act as a disincentive to money managers to invest in riskier emerging market securities.

9.   Higher U.S. bond yields also discouraged investors from buying riskier emerging market securities.

10.   Higher U.S. fixed-income yields could draw money away from riskier emerging markets.