Top 5 Highest Yielding Zacks #1 Ranked International Bond Mutual Funds

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Investing in international bond funds is one of the best ways to balance losses incurred from US markets, since interest rate fluctuations differ from country to country. This is because they show little correlation with domestic equities and only moderate correlation with investment grade domestic debt. They also help in diversifying currency exposure and protecting assets against a long-term secular decline in the U.S. dollar. With their widely diversified holdings, mutual funds offer a secure route to investing in the international bond market.

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

GMO Emerging Country Debt IV

6.66%

T. Rowe Price Emerging Markets Bond

5.77%

J.P.Morgan Emerging Markets Debt

4.94%

Federated Emerging Market Debt A

4.90%

Fidelity New Markets Income

4.57%


GMO Emerging Country Debt IV (GMDFX) seeks total return higher than its benchmark, the J.P. Morgan Emerging Markets Bond Index Global. The fund focuses on investing in sovereign debt of developing markets but it can also invest in entities related or not related to the emerging countries. The international bond mutual fund returned 16.64% in the last one year period.

The Fund Manager is Thomas F. Cooper and he has managed this international bond mutual fund since 1994.

T. Rowe Price Emerging Markets Bond (PREMX) invests heavily in emerging market debt securities. These could be both government securities and those issued by corporate entities. The international bond mutual fund is non-diversified and has returned 11.39% in the last one year period.

The international bond mutual fund has an expense ratio of 0.94% compared to a category average of 1.26%.

J.P.Morgan Emerging Markets Debt (JEMDX) seeks a high level of total return. The fund invests the majority of its assets in fixed income securities issued from developing economies which are expected to provide high total return. The fund may also invest in high yielding bonds with low credit ratings. The international bond mutual fund returned 12.99% in the last one year period.

As of July 2012, this international bond mutual fund held 172 issues, with 6.31% of its total assets invested in Russian Federation 7.5%.

Federated Emerging Market Debt A (IHIAX) invests a large proportion of its assets in debt securities issued from emerging markets. These securities may be dollar-denominated or may be issued in foreign currencies. The international bond mutual fund returned 12.88% in the last one year period.

The Fund Manager is Roberto Sanchez-Dahl and he has managed this international bond mutual fund since 2000.

Fidelity New Markets Income (FNMIX) seeks high current income. The fund invests the majority 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 14% in the last one year period.

The international bond mutual fund has an expense ratio of 0.86% compared to a category average of 1.26%.

To view the Zacks Rank and past performance of all international bond mutual funds, investors can click here to see the complete list of funds.

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.

Read the analyst report on GMDFX

Read the analyst report on PREMX

Read the analyst report on JEMDX

Read the analyst report on IHIAX

Read the analyst report on FNMIX

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