Investors can no longer ignore the attractions of global equity markets and limit themselves to domestic investments. Though U.S equity markets retain their global significance, they no longer command the importance which they did in the past. Research has also shown that a prudent combination of foreign and domestic investments provide better results and aid in reducing risk. With their analytical prowess and expert management global mutual funds provide investors with a unique opportunity to harness the strengths of both local and international financial markets.
Below we will share with you 5 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.
First Eagle Global A (SGENX) seeks capital appreciation over the long term. The fund invests a large proportion of its assets in domestic and foreign common stocks. Foreign securities make up around 40% of the fund’s total investments. This global fund returned 17.58% over the last one year period.
The global mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.19% compared to a category average of 1.22%.
Fidelity Worldwide (FWWFX) invests in at least three countries at any given point in time, including the U.S. The fund focuses on investing in mature economies located in North America, the Pacific Basin and Europe. The global mutual fund has a ten year annualized return of 5.32%.
William Kennedy is the fund manager has managed this global mutual fund since 2006.
Hartford Global Growth A (HALAX) seeks long-term capital growth. At least 65% of the fund’s assets are used to purchase common stocks of growth companies worldwide. Up to 25% of its assets may be invested in companies whose primary business operations are conducted in emerging markets. This global fund returned 13.17% over the last one year period.
As of December 2010, this global mutual fund held 78 issues, with 3.36% of its total assets invested in Apple Inc.
Tweedy,Browne Global Value (TBGVX) invests heavily in foreign securities priced attractively compared to their underlying value. The fund also purchases domestic equity securities and concentrates on acquiring instruments issued from mature markets. The global mutual fund has a five year annualized return of 4.57%.
The global mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.40% compared to a category average of 1.40%.
Virtus Global Opportunities (NWWOX) seeks capital growth. The fund invests heavily in equity-linked securities issued by companies located across the world. The fund may invest in domestic companies as well as those located in emerging markets. It aims to widely diversify its investments to reflect asset allocation in a number of countries. This global mutual fund returned 16.01% over the last one year period.
The fund manager is Rajiv Jain and he has managed this global mutual fund since 2009.
To view the Zacks Rank and past performance of all global mutual funds, then click here.