Top 5 Zacks #1 Ranked International Bond Funds

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International bonds more than half of the fixed-income investment opportunities worldwide. This category includes bond issues from emerging economies and non-government entities. Since interest rate fluctuations differ from country to country, international bonds help to balance downturns in domestic markets. This is because this class of funds shows little correlation with domestic equities and only moderate correlation with investment grade domestic debt. Further they help in diversifying currency exposure and protect assets against a long-term decline in the U.S. dollar

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. 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.

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 14.4% in the last one year period.

The international bond mutual fund has an expense ratio of 0.59% compared to a category average of 1.27%.

Goldman Sachs Local Emerging Markets Debt A (GAMDX) invests a large proportion of its assets in emerging market securities issued by governments or corporations. Not more than 20% of its assets may be utilized to purchase fixed-income securities not issued from emerging markets and currency instruments. The international bond mutual fund returned 2.72% in the last one year period.

The Fund Manager is Samuel Finkelstein and he has managed this international bond mutual fund since 2008.

T. Rowe Price Emerging Markets Bond (PREMX) seeks to provide a high level of current income and invests heavily in emerging market debt securities. These could be both government securities and those issued by corporate entities. The international bond mutual fund returned 8.98% in the last one year period.

As of March 2012, this international bond mutual fund held 347 issues, with 8.22% of its total assets invested in Russian Federation 7.5%

Fidelity New Markets Income (FNMIX) invests a large proportion of its assets in emerging market securities and other instruments related to such markets. The fund may also invest in other instruments and is non-diversified. The international bond mutual fund returned 13.07% in the last one year period.

The international bond mutual fund has an expense ratio of 0.86% compared to a category average of 1.27%.

Columbia Emerging Markets Bond A (REBAX) seeks both capital growth and income. The fund invests the majority of its assets in fixed income securities issued from emerging markets. Not more than one-fourth of its assets may be utilized to purchase instruments issued by any single foreign government. The international bond mutual fund returned 11.28% in the last one year period.

Nicholas Pifer is the fund manager and he has managed this international bond mutual fund since 2006.

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 GAMDX

Read the analyst report on PREMX

Read the analyst report on FNMIX

Read the analyst report on REBAX



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