Wait for Pacific Rim 2, but Buy These 3 Pacific Funds Now - Best of Funds

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Pacific Rim, the American science fiction monster film, had decent success last year with a reported box office collection of $411,002,906. Directed by Guillermo del Toro, the franchise has been in the news these days thanks to the announcement of Pacific Rim 2's release date.  However, we are not focused on the storyline of human cities being attacked by the Kaijus. Instead, we would like to focus on investment potential in the Pacific Rim region and how fund investors can benefit.

Meanwhile, the proposed regional free trade agreement, Trans-Pacific Partnership (TPP), which has been awaiting adoption for years, was recently supported by the U.S. trade chief. The U.S. Trade Representative Michael Froman said that manufacturers and farmers in Washington will gain from eased trade barriers around the Pacific Rim. The Office of the United States Trade Representative website notes that TPP "will unlock opportunities for American workers, families, businesses, farmers, and ranchers by providing increased access to some of the fastest growing markets in the world".

Also, the Asia-Pacific Economic Cooperation (APEC) member economies are gathering in Beijing to discuss ways of boosting trade and global recovery.

Thus, the focus on the region and the economy is prominent. We will pick 3 favorably ranked Pacific Rim funds that may help investors earn a decent return going forward.

Investing in the Pacific Rim Region

The Pacific Basin is one of the world's most diverse and economically vibrant regions. Among its inherent strengths are cutting-edge technological capabilities and a burgeoning savings pool. Renowned centers of production and fast growing potential markets in this part of the world also ensure that it is an exciting investment destination. With a high degree of diversification between developed and developing markets, mutual funds from this sector present a healthy mix of growth opportunities and safety for capital invested.

Tapping into the strengths of both mature and developing economies, these funds ensure that they hold highly diversified portfolios. Moreover, they offer lucrative growth opportunities, while ensuring the safety of capital invested.

APEC to Discuss Ways of Boosting Trade & Economy

The APEC member economies (including Australia, Canada, China, Japan, Mexico, Russia) are in Beijing to work out ways that would boost the economy and trade. Li Baodong, China's Vice Foreign Affairs Minister and 2014 Chair of the APEC Senior Officials' Meeting said: "China and APEC's 20 other member economies are pressing ahead with the creation of a roadmap for an ambitious Free Trade Area of the Asia-Pacific that builds on the region's evolving trade agreement landscape…The success of our work to take economic integration to the next level, boost innovative development and reform, and strengthen infrastructure and comprehensive connectivity in the process hinge on deeper cooperation and information-sharing between us".

3 Pacific Rim Funds to Buy Now

We will pick 3 Pacific Rim mutual funds that carry either Zacks Mutual Fund Rank #1 (Strong Buy) or Zacks Mutual Fund Rank #2 (Buy) as we expect the funds to outperform its peers in the future.

Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but the likely future success of the fund.

These funds also have healthy year-to-date, 3-year and 5-year returns.

Matthews Pacific Tiger Fund Investor Class (MAPTX) invests most of its assets in companies located in Asia excluding Japan. The fund may invest in companies of all sizes but expects them to be of mid to large size. The fund focuses on companies with sustainable growth potential based on fundamental aspects like balance sheet, size and cash flow stability.

The fund carries a Zacks Mutual Fund Rank #1 (Strong Buy) . It has returned 15.3% year to date. The fund has 3 and 5 year-annualized returns of 9.8% and 12.4%, respectively.

Fidelity Pacific Basin (FPBFX) invests majority of its assets in securities of issuers that have their principal activities in the Pacific Basin. For investment decisions, the fund employs fundamental analysis including industry rank and the financial condition of the issuer, and market and economic conditions.

The fund carries a Zacks Mutual Fund Rank #2 (Buy) . It has returned 5.7% year to date. The fund has 3 and 5 year-annualized returns of 12.2% and 14.4%, respectively.

Commonwealth Australia/New Zealand (CNZLX) seeks capital gains over the long run and current income. The fund invests a lion's share of its assets in securities and depositary receipts of Australia and New Zealand issuers. It may also invest in open-end and closed-end funds and exchange-traded funds.

The fund carries a Zacks Mutual Fund Rank #2 (Buy) . It has returned 6.5% year to date. The fund has 3 and 5 year-annualized returns of 8.9% and 9.2%, respectively.

To view the Zacks Rank and past performance of all Pacific Rim 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 in our  Mutual Fund Center .


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Mutual Funds

Referenced Stocks: MAPTX , FPBFX , CNZLX

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