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Highest Yielding Zacks #1 Ranked Funds

Investing in international bond funds is one of the best ways to balance losses incurred from US markets, since interest rate fluctuations differ from country to country. This is because they show little correlation with domestic equities and only moderate correlation with investment grade domestic debt. They also help in diversifying currency exposure and protecting assets against a long-term secular decline in the U.S. dollar. With their widely diversified holdings, mutual funds offer a secure route to investing 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.

Mutual Fund

Sec 30 Day Yield

Franklin Templeton Emerging Market Debt Opportunities

7.44%

John Hancock 2 Emerging Markets Debt A

5.50%

GMO Emerging Country Debt IV

5.23%

Payden Emerging Markets Bond

4.67%

GMO Currency Hedged International Bond III

1.62%

 
Franklin Templeton Emerging Market Debt Opportunities (FEMDX - MF report) seeks appreciably high total return. The fund invests the majority of its assets in emerging market debt securities. It may invest substantially all of its assets in debt securities rated below investment grade. The international bond mutual fund returned 13.08% in the last one year period.

The international bond mutual fund has an expense ratio of 1.00% compared to a category average of 1.26%.

John Hancock 2 Emerging Markets Debt A (JMKAX - MF report) invests a large proportion of its assets in fixed income debt securities, including those issued from emerging markets. The fund utilizes unique research methods to identify countries, industrial sectors and instruments for investment purposes. The international bond mutual fund returned 11.74% in the last one year period.

As of February 2013, this international bond mutual fund held 68 issues, with 2.30% of its total assets invested in Odebrecht Fin 144A 7.5%.

GMO Emerging Country Debt IV (GMDFX - MF report) seeks total return higher than its benchmark, the J.P. Morgan Emerging Markets Bond Index Global. The fund focuses on investing in sovereign debt of developing markets but it can also invest in entities related or not related to the emerging countries. The international bond mutual fund returned 16.19% in the last one year period.

The Fund Manager is Thomas F. Cooper and he has managed this international bond mutual fund since 1994.

Payden Emerging Markets Bond (PYEMX - MF report) invests a large proportion of its assets in debt securities issued from emerging markets. The fund may also invest in debt instruments issued from nations having mature markets. The international bond mutual fund is non-diversified and has returned 11.79% in the last one year period.

The international bond mutual fund has an expense ratio of 0.78% compared to a category average of 1.26%.

GMO Currency Hedged International Bond III (GMHBX - MF report) seeks total return higher than its benchmark, the J.P. Morgan Non-U.S. government Bond Index (Hedged) (ex-Japan). It invests significantly higher proportion of its assets in countries which make up a large share of its benchmark. The international bond mutual fund returned 11.98% in the last one year period.

The Fund Manager is Thomas F. Cooper and he has managed this international bond mutual fund since 1994.

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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