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.
AllianceBernstein Global Thematic Growth A (ALTFX) seeks capital appreciation over the long term. The fund invests in a wide range of equity securities issued by domestic and foreign companies from various sectors and industries. The global mutual fund has a three year annualized return of 1.00%.
The fund manager is Joseph P. Carson and he has managed this global mutual fund since 2008.
ING Global Value Choice A (NAWGX) invests at least 65% of its assets in different countries, including the U.S. A large share of its assets is invested in stocks, depository receipts, derivatives and convertible securities. Not more than 25% of its assets are invested in companies from emerging markets. The global mutual fund has a three year annualized return of 2.07%.
The global mutual fund has an expense ratio of 1.51% compared to a category average of 1.35%.
Artisan Global Value Investor (ARTGX) seeks capital growth over the long term. The fund 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. The global mutual fund has a three year annualized return of 13.30%.
The fund manager is Daniel J. O'Keefe and he has managed this global mutual fund since 2007.
Dreyfus Global Equity Income A (DEQAX) invests a large share of its assets in equity securities. It concentrates on investing in companies from developed capital markets that pay regular dividends. Not more than 30% of its assets are invested in companies from emerging markets. The global mutual fund has a three year annualized return of 11.07%.
As of March 2013, this global mutual fund held 88 issues, with 5.09% of its total assets invested in Philip Morris International, Inc.
Ivy Cundill Global Value A (ICDAX) seeks capital appreciation. The fund invests 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 5.17%.
The global mutual fund has an expense ratio of 1.86% compared to a category average of 1.36%.
To view the Zacks Rank and past performance of all global mutual funds, investors can c lick 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