Top 5 Zacks #1 Ranked International Bond Funds

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The international bond market has come to represent a particularly lucrative opportunity for investors. Though the U.S. bond market continues to attract investors, it has featured infrequently among the best performing international markets. Today international markets represent more than half of the world’s fixed income investment opportunities. Further, the presence of foreign fixed income securities in a portfolio helps protect capital invested against currency fluctuations. With their widely diversified holdings, mutual funds offer a secure route to investing in the international bond market.

Below we will share with you 5 top rated international bond mutual 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 international bond funds, investors can click here to see the complete list of funds.

Goldman Sachs Emerging Market Debt A (GSDAX) invests the majority of its assets in fixed income securities issued from emerging markets. It purchases both government and corporate debt securities and acquires securities regardless of their credit rating. The international bond mutual fund is non-diversified and returned 21.76% in the last one year period.

The Fund Manager is Samuel Finkelstein and he has managed this international bond mutual fund since 2003.

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 28.46% in the last one year period.

The international bond mutual fund an expense ratio of 0.59% compared to a category average of 1.26%.

T. Rowe Price Emerging Markets Bond (PREMX) invests a large share of its assets in emerging market debt securities. These could be both government securities and those issued by corporate entities. Both dollar and non-dollar denominated securities make up the fund’s holdings. The international bond mutual fund returned 21.23% in the last one year period.

As of June 2012, this international bond mutual fund held 358 issues, with 7.66% of its total assets invested in Russian Federation 7.5%

Federated Emerging Market Debt A (IHIAX) seeks high current income. The fund 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 22.06% in the last one year period.

The Fund Manager is Roberto Sanchez-Dahl and he has managed this international bond mutual fund since 2001.

JPMorgan Emerging Markets Debt (JEMDX) invests the majority of its assets in debt securities issued in emerging markets. These securities may be dollar-denominated or may be issued in foreign currencies. The fund is non-diversified and may also purchase securities rated below investment grade. The international bond mutual fund returned 21.03% in the last one year period.

The international bond mutual fund has an expense ratio of 1.00% 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 GSDAX

Read the analyst report on GMDFX

Read the analyst report on PREMX

Read the analyst report on IHIAX

Read the analyst report on JEMDX



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