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Top 5 Highest Yielding Zacks #1 Ranked International Bond Mutual Funds

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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

T. Rowe Price Emerging Markets Bond

6.54%

J.P.Morgan Emerging Markets Debt

5.76%

Goldman Sachs Emerging Markets Debt A

4.88%

Fidelity New Markets Income

4.75%

Goldman Sachs Local Emerging Markets Debt A

4.45%

T. Rowe Price Emerging Markets Bond (PREMX - Free Report) seeks to provide a high level of current income and invests heavily in emerging market debt securities. These could be both government securities and those issued by corporate entities. The international bond mutual fund returned 8.98% in the last one year period.

The international bond mutual fund has an expense ratio of 0.94% compared to a category average of 1.27%.

J.P.Morgan Emerging Markets Debt (JEMDX - Free 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 11.76% in the last one year period.

As of February 2012, this international bond mutual fund held 175 issues, with 9.78% of its total assets invested in Russian Federation 7.5%.

Goldman Sachs Emerging Markets Debt A (GSDAX - Free 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 11.9% in the last one year period.

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

Fidelity New Markets Income (FNMIX - Free Report) 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 13.07% in the last one year period.

The international bond mutual fund has an expense ratio of 0.86% compared to a category average of 1.27%.

Goldman Sachs Local Emerging Markets Debt A (GAMDX - Free Report) seeks income and capital growth. The fund invests a large proportion of its assets in emerging market securities issued by governments or corporations. Not more than 20% of its assets may be utilized to purchase fixed-income securities not issued from emerging markets. The international bond mutual fund returned 2.72% in the last one year period.

The Fund Manager is Samuel Finkelstein 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 at https://www.zacks.com/funds.



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