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Best of Funds

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 5 top rated international bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its 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.

Goldman Sachs Local Emerging Markets Debt A (GAMDX - MF report) seeks appreciably high total return. The fund invests a large share of its assets in sovereign and corporate debt instruments related to developing countries. The instruments invested in must be denominated in their respective currencies. The international bond mutual fund has a one year annualized return of 20.45%.

The Fund Manager is Samuel Finkelstein and he has managed this international bond mutual fund since 2008.

Columbia Emerging Markets Bond A invests the majority of its assets in fixed income instruments issued from emerging markets. A maximum of one-fourth of its assets may be utilized to purchase securities issued by any single foreign government. The international bond mutual fund is non-diversified and returned 20.40% in the last one year period.

The international bond mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.28% compared to a category average of 1.25%.

Fidelity New Markets Income (FNMIX - MF report) seeks high current income. The fund invests heavily in emerging market securities and other investments related to such markets. It predominantly invests in debt instruments but may also purchase other kinds of securities. The international bond mutual fund is non-diversified and returned 20.02% in the last one year period.

As of November 2012, this international bond mutual fund held 250 issues, with 2.71% of its total assets invested in iShares FTSE China 25 Index Fund.

T. Rowe Price Emerging Markets Bond (PREMX - MF report) invests heavily in emerging market debt instruments. The fund Invests in debt instruments issued by both government and corporate firms. The securities held by the fund may be denominated in dollars or other currencies. The international bond mutual fund returned 19.60% in the last one year period.

The international bond mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.94% compared to a category average of 1.25%.

Federated Emerging Market Debt A (IHIAX - MF report) seeks high current income. The fund invests a large share of its assets in fixed income securities of emerging markets. The fund may invest without limit in securities which are not rated investment grade. This non-diversified fund has a one year annualized return of 19.39%.

The Fund Manager is Roberto Sanchez-Dahl and he has managed this international bond mutual fund since 2001.

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.

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