Recent trends in the mutual funds segment have pointed to heavy outflows from domestic funds to those with an emphasis on international markets. Over time a clear preference for non-U.S. funds has emerged and investors now recognize that the foreign markets account for more than half of the world’s equity market cap. Among these countries, emerging markets are of particular interest because of their unlocked growth potential as well as their recent performance. With the advantages of expert management, diversification and a disciplined approach, mutual funds are the best way to explore these markets with a lower risk of running into rough financial weather.
Below we will share with you 5 top rated non-U.S. funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all non-U.S. funds, then click here.
ProFunds UltraLatin America (UBPIX) seeks to match twice the daily performance of Bank of New York Latin America 35 ADR index. The majority of its assets are invested in securities or financial instruments which as a combination can return the results desired. The non-U.S. fund returned 164.61% over the last one year period.
The non-U.S. fund has a minimum initial investment of $15,000 and an expense ratio of 1.73% compared to a category average of 1.86%.
Oppenheimer International Small Company A (OSMAX) seeks capital appreciation over the long term. It primarily invests in companies located outside the U.S. or having primary operations in other countries. At least 80% of its assets are invested in small-cap companies and a sizeable portion is utilized to purchase foreign securities. The non-U.S. fund returned 117.21% in 2009 and has a five year annualized return of 9.18%.
The Fund Manager is Rohit Sah and he has managed this non-U.S. fund since 2004.
Fidelity Canada (FICDX) invests the majority of its assets in Canadian securities or other investments with economic linkages to the country. Up to 35% of its assets are invested in any sector which makes up more than 20% of the Canadian market. It is a no load fund and focuses on acquiring common stocks.
The non-U.S. fund has a ten year annualized return of 10.39%.
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 non-U.S. fund returned 58.19% over the last one year period.
As of December 2009, this non-U.S. fund held 59 issues, with 3.80% of its total assets invested in Ctrip.com International, Ltd. ADR.
Sextant International (SSIFX) invests a large share of its assets in several countries, with an emphasis on developed markets. It invests across sectors and uses a value based approach to select its investments. The non-U.S. fund has a five year annualized return of 8.11%.
Nicholas Kaiser is the fund manager and he has managed this non-U.S. fund since 1995.
To view the Zacks Rank and past performance of all non-U.S. 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/
