Financial markets abroad have gradually acquired greater prominence and today they account for more than half of the world’s equity market cap. Investors are now aware of this fact and over time a clear preference for international mutual funds has emerged. Emerging market mutual funds are of particular interest because of the untapped potential of these countries as well as their growth performance. International mutual funds are the best way to explore these markets since they have the advantages of expert management, diversification and a disciplined approach.
Below we will share with you 5 top rated international 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 mutual funds, then click here.
Sentinel International Equity A (SWRLX) seeks capital appreciation over the long term. The fund invests the majority of its assets in equity securities from foreign countries. Under normal circumstances it invests on at least 10 countries at any given point in time. Up to 40% of its assets may be invested in one country. Though it focuses on purchasing securities form developed markets, up to 20% of its assets may be invested in emerging economies. The international mutual fund returned 11.96% in the last one year period.
The international mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.60% compared to a category average of 1.40%.
Laudus International MarketMasters (SWOIX) invests a large proportion of its assets in equity securities of companies located outside the US. The fund invests in companies regardless of their market capitalization. It focuses on securities from mature economies but may also invest in developing markets. The international mutual fund has a five year annualized return of 4.5%.
The Fund Manager is Jeffrey Mortimer and he has managed this international mutual fund since 1997.
Fidelity International Discovery (FIGRX) seeks capital appreciation. The fund seeks to achieve its investment objectives be investing in securities of international issuers. It focuses on purchasing common stock and allocates funds across economies keeping in mind the size of their markets relative to the size of the entire global market. The international mutual fund returned 6.5% in the last one year period.
The international mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.07% compared to a category average of 1.40.
Scout International (UMBWX) invests the majority of its assets in prominent firms located abroad or those whose principal operations are conducted outside the US. Not more than 25% of the fund’s assets are invested in any one country. It focuses on purchasing equity securities, but may invest up to 20% of its assets in fixed-income and money market securities. The international mutual fund has a ten year annualized return of 3.32%.
As of June 2010, this international mutual fund held 87 issues, with 2.12% of its total assets invested in United Overseas Bank Ltd.
Artio International Equity A (BJBIX) seeks capital growth over the long term. The fund primarily invests in equity securities issued by foreign companies from various market sectors. At least 65% of its assets are invested in not less than three foreign economies. Up to 35% of its assets may be invested in developing countries. The international mutual fund returned 7.59% in the last one year period.
The Mutual Fund Manager is Rudolph-Riad Younes and he has managed this international mutual fund since 1995.
To view the Zacks Rank and past performance of all international 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/
