The key benefit that global mutual funds provides is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility. However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of risk.
Below we will share with you 4 top rated global 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 global funds, investors can click here to see the complete list of funds.
Pax World Growth Individual Investor (PXWGX - Free Report) seeks capital appreciation over the long run. The fund generally invests in equities of companies that are believed to have impressive growth potentials. It may invest a maximum of 45% of its assets in foreign securities including that from emerging economies and ADRs. The may invest up to 25% of its assets in foreign companies excluding ADRs. It uses financial, and environmental, social and governance (ESG) analysis to select its investment. The global mutual fund has a three-year annualized return of 14.6%.
Anthony Trzcinka is the fund manager and has managed the fund since 2006.
Russell Global Infrastructure A (RGIAX - Free Report) invests a lion’s share of its assets in companies that are in operations related to infrastructure sector including energy, transportation and communication. It may invest a considerable share of its assets in companies located outside the U.S. including that from emerging markets. The global mutual fund has a three-year annualized return of 12.9%.
As of December 2014, this fund held 254 issues with 5.31% of its assets invested in Transurban Group.
Pioneer Global Equity A (GLOSX - Free Report) seeks long-term capital appreciation. The fund invests a major portion of its assets in companies located all over the world. It invests a minimum of 40% of its assets in foreign companies and other securities having identical characteristics. It may invest a maximum of 20% of its assets in debt securities and may invest not more than 5% of its assets in “junk bonds”. The global mutual fund has a three-year annualized return of 14.3%.
The fund has an expense ratio of 1.30% as compared to category average of 1.32%.
Invesco Global Small & Mid Cap Growth A (AGAAX - Free Report) invests a large chunk of its assets in small and mid-cap companies throughout the globe. It invests in a minimum of three countries. A maximum of 35% of its assets may be invested in firms from emerging economies. The global mutual fund has a three-year annualized return of 12.6%.
As of September 2014, this fund held 117 issues with 2.68% of its assets invested in DCC PLC.
To view the Zacks Rank and past performance of all global 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 www.zacks.com/funds/mutual-funds.