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.
Artio Global Equity A (BJGQX) seeks a high level of total return. The fund invests the majority of its assets in companies worldwide. Under normal circumstances, not less than 40% of its assets are invested in at least three foreign countries. The global mutual fund has a three year annualized return of 2.54%.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.40% compared to a category average of 1.42%.
Manning & Napier World Opportunities A (EXWAX) invests in companies worldwide, including companies from the U.S. It primarily purchases common stocks but may also invest in ADRs and dollar-denominated foreign securities. The global mutual fund has a three year annualized return of 1.09%.
As of September 2012, this global mutual fund held 94 issues, with 3.97% of its total assets invested in Schlumberger NV.
Russell Global Equity A (RGEAX) seeks capital appreciation over the long term. The fund focuses on investing in companies with economic linkages to a number of countries worldwide, as well as in the U.S. It focuses on investing in large and mid-cap companies. The global mutual fund has a three year annualized return of 6.59%.
Matthew Beardsley is the fund manager and he has managed this global mutual fund since 2009.
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 12.01%.
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 1.42%.
Tweedy,Browne Global Value (TBGVX) seeks capital growth over the long term. The fund invests heavily in foreign securities priced attractively compared to their underlying value. The fund also purchases domestic equity securities and concentrates on acquiring instruments issued from mature markets. The global mutual fund has a three year annualized return of 9.91%.
The fund manager is William D. Browne and he has managed this global mutual fund since 1993.
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.
More From Zacks.com