Matthews China (MSHFX) has dropped out of The Rukeyser 100 amid rising inflation and concerns that the global economy is experiencing a broad-based slowdown. China’s inflation rate recently hit 6.5 percent, leading many to speculate that the People’s Bank of china will hike interest rates and boost bank reserve requirements. Consequently, Chinese equities have struggled to break into positive territory during the past two months. Despite these short-term concerns, a growing middle class in China remains a powerful investment theme and Matthews china remains one of the best performing China-focused funds.

USAA Tax Exempt Long-Term (USTEX) and Vanguard Long-Term Bond Index (VBLTX) have joined The Rukeyser 100 this month, replacing short-term bond funds as investors have moved further along the yield curve. The global economy has slowed during the past few months, lowering the odds of interest rate hikes in the developed world. As a result, investors have purchased longer-date bonds to take advantage of slightly higher yields.