Non U.S equity funds represent an exciting opportunity for domestic investors, most of whose portfolios consist entirely of U.S based securities. A world of investment opportunities are available abroad, especially in emerging markets, which continue to grow at a rapid pace despite the recent economic downturn. However, such investments carry unique liquidity risks and therefore mutual funds can provide the best way to invest safely in this sector.
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.
ING Russia Fund A (LETRX) seeks capital growth by investing the majority of its assets in Russian companies. Up to 20% of its assets may be used to purchase debt securities issued by Russian companies or the Russian government regardless of their investment quality or maturity period. The non-U.S. fund returned 130% in 2009 and has a ten year annualized return of 23.78%.
This non-U.S. fund has a minimum initial investment of $1,000 and an expense ratio of 2.07% compared to a category average of 1.72%.
RS Emerging Markets A (GBEMX) invests at least 80% of its assets in emerging market companies. It also utilizes up to 20% of its assets to purchase bonds or money market instruments and up to 10% of assets to purchase securities rated below investment grade. The non-U.S. fund returned 93% over the last one year period.
The Fund Manager is Edward Hocknell and he has managed this non-U.S. fund since 1997.
T. Rowe Price Latin America (PRLAX) invests primarily in Latin American companies. More than 25% of its assets may be placed in telecom companies of various Latin American countries. It is a no load fund.
The non-U.S. fund has a five year annualized return of 28%.
Templeton BRIC A (TABRX) invests a large share of its assets in fixed-income securities with a wide range of maturity periods. It utilizes up to 35% of its assets to purchase lower rated fixed-income securities and a smaller portion to acquire preferred stocks. The non-U.S. fund returned 91% over the last one year period.
As of June 2009, this non-U.S. fund held 47 issues, with 8.44% of its total assets invested in Petroleo Brasileiro SA Petrobras.
Bernstein Emerging Markets (SNEMX) seeks capital appreciation by investing at least 80% of its assets in companies located in emerging markets. It invests in value stocks and growth stocks with equal emphasis. The non-U.S. fund returned 87.4% in 2009 has a ten year annualized return of 12.37%.
Seth J. Masters is the fund manager and 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/
