Investing in international bond funds is one of the best ways to
balance losses incurred from US markets, since interest rate
fluctuations differ from country to country. This is because they
show little correlation with domestic equities and only moderate
correlation with investment grade domestic debt. They also help in
diversifying currency exposure and protecting assets against a
long-term secular decline in the U.S. dollar. With their widely
diversified holdings, mutual funds offer a secure route to
investing in the international bond market.
Below we will share with you the 5 highest yielding Zacks #1
ranked international bond 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 international bond funds, investors can
click here to see the complete list of funds
.
|
Mutual Fund
|
Sec 30 Day Yield
|
|
GMO Emerging Country Debt IV
|
6.66%
|
|
T. Rowe Price Emerging Markets Bond
|
5.77%
|
|
J.P.Morgan Emerging Markets Debt
|
4.94%
|
|
Federated Emerging Market Debt A
|
4.90%
|
|
Fidelity New Markets Income
|
4.57%
|
GMO Emerging Country Debt IV
(
GMDFX
) seeks total return higher than its benchmark, the J.P. Morgan
Emerging Markets Bond Index Global. The fund focuses on investing
in sovereign debt of developing markets but it can also invest in
entities related or not related to the emerging countries. The
international bond mutual fund returned 16.64% in the last one year
period.
The Fund Manager is Thomas F. Cooper and he has managed this
international bond mutual fund since 1994.
T. Rowe Price Emerging Markets Bond
(
PREMX
) invests heavily in emerging market debt securities. These could
be both government securities and those issued by corporate
entities. The international bond mutual fund is non-diversified and
has returned 11.39% in the last one year period.
The international bond mutual fund has an expense ratio of 0.94%
compared to a category average of 1.26%.
J.P.Morgan Emerging Markets Debt
(
JEMDX
) seeks a high level of total return. The fund invests the majority
of its assets in fixed income securities issued from developing
economies which are expected to provide high total return. The fund
may also invest in high yielding bonds with low credit ratings. The
international bond mutual fund returned 12.99% in the last one year
period.
As of July 2012, this international bond mutual fund held 172
issues, with 6.31% of its total assets invested in Russian
Federation 7.5%.
Federated Emerging Market Debt A
(
IHIAX
) invests a large proportion of its assets in debt securities
issued from emerging markets. These securities may be
dollar-denominated or may be issued in foreign currencies. The
international bond mutual fund returned 12.88% in the last one year
period.
The Fund Manager is Roberto Sanchez-Dahl and he has managed this
international bond mutual fund since 2000.
Fidelity New Markets Income
(
FNMIX
) seeks high current income. The fund invests the majority of its
assets in emerging market securities and other instruments related
to such markets. It is a non diversified fund and may also invest
in other instruments. The international bond mutual fund returned
14% in the last one year period.
The international bond mutual fund has an expense ratio of 0.86%
compared to a category average of 1.26%.
To view the Zacks Rank and past performance of all international
bond 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.
(FNMIX): ETF Research Reports
(GMDFX): ETF Research Reports
(IHIAX): ETF Research Reports
(JEMDX): ETF Research Reports
(PREMX): ETF Research Reports
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