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Mutual Fund Commentary

Top 5 Zacks #1 Ranked International Bond Funds

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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.

Fidelity New Markets Income invests the majority of its assets 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 16.77% in the last one year period.

The Fund Manager is John H. Carlson and he has managed this international bond mutual fund since 1995.

T. Rowe Price Emerging Markets Bond seeks capital growth and high income. The fund invests a large share of its assets in emerging market debt instruments. The fund invests in debt instruments issued by both government and corporate entities. The international bond mutual fund returned 14.76% 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%.

JPMorgan Emerging Markets Debt invests the majority of its assets in government as well as corporate debt securities issued from emerging markets. The fund may invest a substantial amount of its assets in junk bonds. The international bond mutual fund returned 16.58% in the last one year period.

As of November 2012, this international bond mutual fund held 98 issues, with 2.99% of its total assets invested in Colombia Rep 4.375%.

Goldman Sachs Local Emerging Markets Debt A 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 12.08%.

The international bond mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.27% compared to a category average of 1.25%.

Columbia Emerging Markets Bond A invests the majority of its assets in emerging markets fixed income instruments. Not more than one-fourth of its total assets can be allocated to securities issued by any single foreign government. The international bond mutual fund is non-diversified and returned 16.49% in the last one year period.

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

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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