The key benefit that global mutual funds provide is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of risk.
Below we will share with you 5 top rated global 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 global funds, investors can click here to see the complete list of funds.
American Funds Global Growth Portfolio A (PGGAX) invests in underlying funds from the same stable which are essentially growth funds. These funds invest a majority of their assets in common stocks. A minimum of 25% of its assets are invested in funds which hold foreign securities. This global fund returned 14.07% over the last one year period
The fund manager is Wesley K.-S. Phoa. and he has managed this global mutual fund since 2012.
ING Global Value Choice A (NAWGX) seeks capital appreciation over the long term. The fund invests at least 65% of its assets in different countries, including the U.S. A large share of its assets is invested in stocks, depository receipts, derivatives and convertible securities. The global mutual fund returned 10.49% over the last one year period.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.51% compared to a category average of 1.35%.
Harding Loevner Global Equity Advisor (HLMGX) invests the majority of its assets in domestic companies as well as those located in foreign countries. The fund primarily invests in common stock, convertible securities, rights and warrants. The global mutual fund returned 8.17% over the last one year period.
As of March 2013, this global mutual fund held 65 issues, with 3.72% of its total assets invested in eBay Inc.
Artio Select Opportunities A (BJGQX) seeks high total return. The fund invests a large share of its assets in equity securities of both domestic and foreign companies. The fund has no restrictions on the amount it can invest in emerging market securities. It may also invest in futures, options and swaps. The global mutual fund returned 4.27% over the last one year period.
The fund manager is Keith Walter and he has managed this global mutual fund since 2012.
Nuveen Tradewinds Global All-Cap A (NWGAX) invests 40% to 75% of its assets in foreign equity securities. Not more than 35% of its assets are invested in a single foreign nation. A maximum of 25% of its assets are invested in emerging economies. The global mutual fund returned 3.54% over the last one year period.
The global mutual fund has an expense ratio of 1.29% compared to a category average of 1.35%.
To view the Zacks Rank and past performance of all global 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.
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