Investors have gradually begun to recognize the opportunity that the international bond market has come to represent. Though the U.S. bond market continues to attract investors, it has featured only infrequently among the best performing international markets. Today international markets represent more than half of the world’s fixed income investment opportunities. With the advantages of widely diversified holdings and professional management, mutual funds offer a secure route for those looking to invest in the international bond market.

Below we will share with you the 5 highest yielding Zacks #1 ranked international bond 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 international bond funds, investors can click here to see the complete list of funds.

The international bond mutual fund has an expense ratio of 0.94% compared to a category average of 1.28%.

J.P.Morgan Emerging Markets Debt ( JEMDX - MF report ) invests in fixed income securities issued from developing economies which are expected to provided high total return. The fund may also invest in high yielding bonds with low credit ratings. The international bond mutual fund returned 9.24% in the last one year period.

As of May 2012, this international bond mutual fund held 181 issues, with 8.19% of its total assets invested in Russian Federation 7.5%.

Fidelity New Markets Income ( FNMIX - MF report ) seeks high current income. The fund invests a large proportion of its assets in emerging market securities and other instruments related to such markets. It is a non diversified fund and may also invest in other instruments. 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.

GMO Currency Hedged International Bond III ( GMHBX - MF report ) invests a large share of its assets in bonds and is non-diversified. The fund’s objective is to provide total return higher than its benchmark, the J.P. Morgan Non-U.S. government Bond Index (Hedged) (ex-Japan).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%.

Goldman Sachs Emerging Markets Debt A ( GSDAX - MF report ) seeks income and capital growth. The fund invests the majority of its assets in debt securities issued from emerging markets. The average maturity period of securities which make up the fund are identical to those included in the J.P. Morgan EMBI Global Diversified Index. The international bond mutual fund returned 10.26% in the last one year period.

The Fund Manager is Samuel Finkelstein and he has managed this international bond mutual fund since 2003.

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