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 New Economy A (ANEFX) invests in common stock issued by domestic companies with the ability to grow in the future. The firm might also invest a major proportion of investment in securities issued by foreign companies. These also include developing nations. This global fund returned 21.62% over the last one year period
The fund manager is Timothy D. Armour and he has managed this global mutual fund since 1990.
Polaris Global Value (PGVFX) seeks capital growth. The fund usually invests in about 15 industries for diversification. Investments are made in common stock of global companies irrespective of their market cap. This might include companies from emerging and developing nations, which are usually not part of the Morgan Stanley Capital International World Index. The global mutual fund returned 20.99% over the last one year period.
The global mutual fund has an expense ratio of 1.36% compared to a category average of 1.35%.
JHancock2 Technical Opportunities A (JTCAX) invests in equity and like securities of global companies including companies from developing and emerging countries. A maximum of 25% is invested in a particular industry. However, it may invest without limit in an economic sector. The global mutual fund returned 21.88% over the last one year period.
As of March 2013, this global mutual fund held 112 issues, with 4.53% of its total assets invested in Regeneron Pharmaceuticals.
First Eagle Global A (SGENX) seeks capital growth on a long term basis. The fund invests assets in equity securities of both domestic and foreign companies irrespective of their market cap. It may also invest in derivatives and commodities. The global mutual fund returned 12.45% over the last one year period.
The fund manager is Matthew McLennan and he has managed this global mutual fund since 2008.
Kinetics Paradigm No Load (WWNPX) invests a minimum of 65% in common stocks, warrants and convertible securities of domestic and foreign companies. A maximum of 20% is invested in junk bonds. The non-diversified global mutual fund returned 22.48% over the last one year period.
The global mutual fund has an expense ratio of 1.64% 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 at http://www.zacks.com/funds.
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