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.
Thornburg Global Opportunities A (THOAX) seeks capital growth over the long term. The fund invests in a wide range of equity securities worldwide. This includes common and preferred stocks, real estate investment trusts and other equity trusts. The global mutual fund has a three year annualized return of 8.87%.
The global mutual fund has a minimum initial investment of $ 5,000 and an expense ratio of 1.49% compared to a category average of 1.41%.
Artio Select Opportunities A (BJGQX) invests the majority 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 has a three year annualized return of 1.59%.
The fund manager is Keith Walter and he has managed this global mutual fund since 2012.
MassMutual Premier Global A (MGFAX) seeks to generate long term capital appreciation. The fund invests without any restriction across several countries including emerging economies. However, it primarily focuses on investments in developed markets such as the US, Western European countries and Japan. The global mutual fund has a three year annualized return of 7.63%.
As of August 2012, this global mutual fund held 91 issues, with 3.46% of its total assets invested in Ericsson Telephone Company.
Artisan Global Value Investor (ARTGX) invests a large share of its assets in domestic and foreign equity securities. The fund seeks to acquire securities which are attractively priced compared to their underlying value, focusing on common stocks. The global mutual fund has a three year annualized return of 12.05%.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.50% compared to a category average of 1.41%.
Ivy Cundill Global Value A (ICDAX) seeks long term capital appreciation by primarily investing 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 has a three year annualized return of 2.71%.
The fund manager is James Thompson and he has managed this global mutual fund since 2009.
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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