The present valuations in the international bond markets are attractive, as we are experiencing a high interest rate scenario due to factors such as the sovereign debt crisis in the European countries. This is a good time for investors to step into the international bond space as high interest rates would provide regular cash flows in the form of interest income as well as capital appreciation over the long term. International bond funds provide a great opportunity to invest in bonds other than U.S fixed income securities market in a cost effective way.
Below we will share with you the 5 highest yielding Zacks #1 ranked international bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all international bond funds, investors can click here to see the complete list of funds.
| Mutual Fund | Sec 30 Day Yield |
|---|---|
| Consulting Group International Fixed Income | 6.23% |
| J.P.Morgan Emerging Markets Debt | 5.76% |
| Fidelity New Markets Income | 5.51% |
| Goldman Sachs Emerging Markets Debt A | 4.88% |
| Federated Emerging Market Debt A | 4.84% |
Consulting Group International Fixed Income (TIFUX) seeks capital protection and regular income and invests the majority of its assets in non-dollar denominated fixed-income securities. The fund focuses on acquiring securities rated investment grade, but it may invest some of its assets in high yield bonds. The international bond mutual fund returned 7.47% in the last one year period.
The international bond mutual fund has an expense ratio of 0.72% compared to a category average of 1.10%.
J.P.Morgan Emerging Markets Debt (JEMDX) invests in fixed income securities issued from developing economies which are expected to provided high total return. The fund may also invest in high yielding bonds with low credit ratings. The international bond mutual fund returned 9.8% in the last one year period.
As of December 2011, this international bond mutual fund held 173 issues, with 8.91% of its total assets invested in Russian Federation 7.5%.
Fidelity New Markets Income (FNMIX) seeks a high level of current income. The fund invests a large proportion of its assets in emerging market securities and other instruments related to such markets. It is a non diversified fund and may also invest in other instruments. The international bond mutual fund returned 11.35% in the last one year period.
John H. Carlson is the fund manager and he has managed this international bond mutual fund since 1995.
Goldman Sachs Emerging Markets Debt A (GSDAX) invests the majority of its assets in debt securities issued from emerging markets. The average maturity period of securities which make up the fund are identical to those included in the J.P. Morgan EMBI Global Diversified Index. The international bond mutual fund returned 10.18% in the last one year period.
The international bond mutual fund has an expense ratio of 1.22% compared to a category average of 1.27%.
Federated Emerging Market Debt A (IHIAX) invests a large share of its assets in debt securities issued from emerging markets. These securities may be dollar-denominated or issued in foreign currencies. The international bond mutual fund returned 10.21% in the last one year period.
Roberto Sanchez-Dahl is the fund manager and he has managed this international bond mutual fund since 2001.
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.
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