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.
Evermore Global Value A (EVGBX - MF report) invests in both domestic and foreign companies. A minimum of 40% of assets are invested in securities of foreign companies which may be located in both mature and developing markets. The fund focuses on acquiring value stocks. The global mutual fund returned 33.67% over the last one year period.
The fund manager is David Marcus and he has managed this global mutual fund since 2009.
American Funds New Economy A (ANEFX - MF report) seeks capital appreciation over the long term. It invests in common stock issued by companies with the ability to grow in the future. The firm may invest a major proportion of its assets in securities issued by foreign companies. These also include developing nations. The global mutual fund returned 37.35% over the last one year period.
The fund has an expense ratio of 0.83% as compared to category average of 1.22%.
JHancock2 Technical Opportunities A (JTCAX) invests in equity and related securities of global companies including the ones from developing and emerging countries. A maximum of 25% is invested in a particular industry. However, it may invest without limit in an economic sector. The global mutual fund returned 39.43% over the last one year period.
As of December 2013, the fund held 121 issues with 4.48% of its assets invested in Regeneron Pharmaceuticals, Inc.
Marsico Global (MGLBX - MF report) seeks capital appreciation over the long term. It invests in common stocks issued by both domestic and foreign companies with good long-term prospects. The fund invests a minimum of 40% of its assets in foreign companies or those which primarily operate outside the U.S. The global mutual fund returned 32.80% over the last one year period.
Thomas F. Marsico is the fund manager and has managed this fund since 2007.
Columbia Marsico Global A (COGAX) generally invests a minimum of 40% of its assets in foreign companies or companies with operations outside the US. It may invest in foreign companies of any size with growth potential over the long term. It invests in firms from a minimum of three countries; which may include firms with economic relation to emerging nations. The global mutual fund returned 31.62% over the last one year period.
The fund has an expense ratio of 1.57% as compared to category average of 1.35%.
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.
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