Investing in foreign equity markets has emerged as a lucrative option for investors, most of whose portfolios consist almost entirely of domestic securities. Around half of the world’s equity market capitalization is made up by international equity markets. Emerging markets, which continue to grow at a rapid pace, are of particular interest for those looking at appreciably higher rates of return. However, such investments also carry unique risks and mutual funds provide a less risky means of exposure to this sector than stocks.
Below we will share with you the 5 best performing foreign mutual funds year to date. To view the Zacks Rank and past performance of all foreign funds, then click here.
| Mutual Fund | Zacks Rank | Total Return YTD |
| Wasatch Emerging Markets Small Cap | #1 Strong Buy | 14.3% |
| Wasatch International Growth | #1 Strong Buy | 10.8% |
| JP Morgan Russia A | #1 Strong Buy | 10.6% |
| Matthews Asia Pacific Fund | #1 Strong Buy | 10.4% |
| Templeton Emerging Markets Small Cap A | #1 Strong Buy | 9.7% |
Wasatch Emerging Markets Small Cap (WAEMX) invests the majority of its assets in companies from developing markets with small market capitalizations. Equity securities issued by companies with market caps of less than $3 billion constitute its major investments. The foreign mutual fund returned 47.19% in the last one year period
The fund manager is Roger Edgley and he has managed this foreign mutual fund since 2007.
Wasatch International Growth (WAIGX) seeks capital growth over the long term. It invests a large share of its assets in securities from emerging markets. It invests in a minimum of five countries included in the MSCI AC World Ex-U.S.A. Small Cap index. The foreign mutual fund returned 29.53% in the last one year period and has a five year annualized return of 5.65%.
The foreign mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.94% compared to a category average of 1.63%.
JPMorgan Russia A (JRUAX) invests at least 80% of its assets in Russian equity securities or instruments which are identical in economic character. Up to 20% of its assets are utilized to purchase private debt securities or those issued by government bodies. The foreign mutual fund returned 51.43% in the last one year period
The fund manager is Oleg Biryulyov and he has managed this foreign mutual fund since 2007.
Matthews Asia Pacific (MPACX) seeks capital growth by investing in companies from the Asia Pacific region. It purchases common and preferred stock as well as convertible securities of varying durations and quality issued by these companies. The foreign fund has a five year annualized return of 8.16%.
As of June 2010, this foreign fund held 62 issues, with 3.04% of its total assets invested in Ctrip.com International, Ltd. ADR.
Templeton Emerging Markets Small Cap A (TEMMX) invests the majority of its assets in small cap securities issued by companies from emerging markets. Up to 20% of its assets are utilized to purchase securities from mature economies and up to 15% is invested in illiquid instruments. The foreign mutual fund returned 33.85% in the last one year period.
The fund manager is Mark J. Mobius and he has managed this foreign mutual fund since 2006.
To view the Zacks Rank and past performance of all foreign mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
