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.
Evermore Global Value A (EVGBX) invests in both domestic and foreign companies. A minimum of 40% of assets are invested in securities of foreign companies which may be located in both mature and developing markets. The fund focusses on acquiring value stocks. The global mutual fund returned 33.86% over the last one year period.
The fund manager is David Marcus and he has managed this global mutual fund since 2009.
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 15.36% 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 39.4% 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.
Virtus Global Opportunities A (NWWOX) seeks capital growth. The fund invests in equity and related securities issued from across the world. This includes domestic securities as well as those issued from developing economies. The companies selected must have proven performance records over a significant time period. The global mutual fund returned 12.73% over the last one year period.
The fund manager is Matthew Benkendorf and has managed this global mutual fund since 2009.
Royce Global Value (RIVFX) invests a minimum of 40% of assets in securities of foreign companies which are from a minimum of three different countries. A minimum of 35% of assets is also invested in non-convertible debt which may be either domestic or foreign in nature. The global mutual fund returned 5% over the last one year period.
The global mutual fund has an expense ratio of 1.69% 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.
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