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.
Marsico Global (MGLBX) invests in common stocks issued by both domestic and foreign companies with good long term prospects. The fund invests a minimum of 40% of its assets in foreign companies or those which primarily operate outside the U.S. The global mutual fund returned 34.41% over the last one year period.
The fund manager is Thomas F. Marsico and he has managed this global mutual fund since 2007.
Dreyfus Worldwide Growth A (PGROX) seeks capital growth on a long term basis along with capital preservation and current income. The fund invests a minimum of 25% of its assets in domestic and foreign companies each. It focuses on companies whose market cap is more than $5 billion. The global mutual fund returned 17.22% over the last one year period.
The global mutual fund has an expense ratio of 1.22% compared to a category average of 1.34%.
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. The global mutual fund returned 37.65% over the last one year period.
As of September 2013, this global mutual fund held 192 issues, with 3.44% of its total assets invested in Galaxy Entertainment Group Ltd.
Ivy Cundill Global Value A (ICDAX) seeks capital appreciation. The fund invests in equity securities issued by local companies in developed as well as emerging markets. The stocks are considered undervalued compared to their current market valuations. The global mutual fund returned 37.91% over the last one year period.
The fund manager is Andrew Massie and has managed this global mutual fund since 2007.
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 39.94% over the last one year period.
The global mutual fund has an expense ratio of 1.86% compared to a category average of 1.34%.
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
Read the analyst report on MGLBX
Read the analyst report on PGROX
Read the analyst report on ANEFX
Read the analyst report on ICDAX
Read the analyst report on JTCAX
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