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 5 top rated international bond
mutual funds. Each has earned a
Zacks #1
Rank
(Strong Buy) as we expect the fund to outperform its 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
.
Consulting Group International Fixed Income
(
TIFUX
) invests the majority of its assets in non-dollar denominated debt
securities. The fund focuses on acquiring securities rated
investment grade. Not more than 15% of its assets may be utilized
to purchase securities rated below investment grade. The
international bond mutual fund returned 8.49% in the last one year
period.
The international bond mutual fund has a minimum initial
investment of $100 and an expense ratio of 0.72% compared to a
category average of 1.09%.
T. Rowe Price Emerging Markets Bond
(
PREMX
) seeks to provide a high level of current income and invests
heavily in emerging market debt securities. These could be both
government securities and those issued by corporate entities. The
international bond mutual fund returned 6.44% in the last one year
period.
As of June 2012, this international bond mutual fund held 358
issues, with 7.66% 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 8.89% in the last one year
period.
The Fund Manager is Roberto Sanchez-Dahl and he has managed this
international bond mutual fund since 2000.
GMO Currency Hedged International Bond III
(
GMHBX
) seeks total return higher than its benchmark, the J.P. Morgan
Non-U.S. government Bond Index (Hedged) (ex-Japan). The fund
invests the majority of its assets in bonds and is non-diversified.
It invests significantly higher proportion of its assets in
countries which make up a large share of its benchmark. The
international bond mutual fund returned 9.93% in the last one year
period.
The international bond mutual fund has an expense ratio of 0.39%
compared to a category average of 1.09%.
Fidelity New Markets Income
(
FNMIX
) invests a large proportion of its assets in emerging market
securities and other instruments related to such markets. The fund
may also invest in other instruments and is non-diversified. The
international bond mutual fund returned 11.59% in the last one year
period.
The Fund Manager is John H. Carlson and he has managed this
international bond mutual fund since 1995.
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
.
View All Zacks #1 Ranked Mutual Funds
(FNMIX): ETF Research Reports
(GMHBX): ETF Research Reports
(IHIAX): ETF Research Reports
(PREMX): ETF Research Reports
(TIFUX): ETF Research Reports
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