Top Global Equity Mutual Funds

Today we are featuring top-performing "global equity" mutual funds, which invest in common stocks of both U.S. and foreign companies.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Global Equity Funds list.

3 Solid Samples

Federated Prudent Global Income A (PSAFX) seeks current income and capital appreciation. This nondiversified fund was set up in February 2000 and is managed by David W. Tice & Associates.

PSAFX is a no-load, high quality international fixed-income fund with a precious metals component. The fund is currently structured to benefit from a declining US dollar and rising gold prices. PSAFX typically invests significantly in foreign government securities of developed countries. It has allocated 31.06% of its assets in intermediate bonds, 8.79% in foreign stock and 7.94% in precious metals.

The fund pays dividends at the end of each calendar quarter. Capital gains, if any, are distributed annually in December. At the end of 2008, its portfolio turnover was 112%. Unit holders have to make a minimum initial investment of $1,500 to enter the Zacks#1 Rank ("Strong buy") fund that beat 424.97% of its peers in terms of total return in 2008.

Templeton Income A (TINCX) was incepted in July 2005 and seeks current income while maintaining prospects for capital appreciation. It invests in a diversified portfolio of debt and equity securities worldwide.

The fund's equity component is primarily composed of dividend-yielding stocks. Its fixed-income component generally consists of government and agency bonds of both developed and developing countries. The fund may also invest in bonds below investment grade and emerging-market debt securities. It distributes a quarterly dividend.

The fund?s top equity holdings include Vodafone Group Plc (VOD - Analyst Report), Accenture Ltd. (ACN - Snapshot Report) and Merck & Co. Inc. (MRK - Analyst Report)

First Eagle Global A (SGENX) seeks long-term capital growth through investment in a range of asset classes. It generally invests in common stocks of U.S. and foreign companies.

The fund has the right to invest some of its assets in fixed-income securities of domestic or foreign issuers and in short-term debt instruments. It makes periodic distributions of dividends and capital gains, if any.

The fund was incepted in April 1970 and is managed by Arnhold and S. Bleichroeder Advisers, LLC. It had a portfolio turnover of Turnover 12.29% as of October 2008. The Zacks#1 Rank ("Strong buy") fund's key holdings include Secom, Fanuc Ltd. and Astellas Pharma Inc. SGENX had a 210.29% annual return relative to the S&P 500 index in 2008.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

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.