One of the richest continents in the world, Europe consists of both mature markets and emerging economies. The European Union represents the largest economy in the world and is expected to grow at a rapid pace as more countries join the regional bloc. Its developed nations offer safe destinations for investors’ capital, emerging markets offer exciting growth prospects for those willing to take on a higher degree of risk. Mutual funds focusing on Europe are back in favor again as the region offers healthy prospects for investors.
Below we will share with you 5 top rated European mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Fidelity Europe Capital Appreciation (FECAX) invests primarily in European securities and instruments with linkages to the European continent. It invests in a particular economy keeping in mind its importance relative to the region as a whole. The European mutual fund returned 8.38% in the last one year period and has a five year annualized return of 3.64%.
Melissa M. Reilly is the fund manager and has managed this European mutual fund since 2007.
Metzler/Payden European Emerging Markets (MPYMX) seeks long-term capital growth. The fund invests heavily in companies located in European emerging market countries. It focuses on acquiring equity securities that are tradable and pay dividends in foreign currencies such as the euro. The European mutual fund has a five year annualized return of 7.78%.
The European mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.50% compared to a category average of 1.72%.
T. Rowe Price Emerging Europe & Mediterranean (TREMX) invests at least 80% of assets in emerging-market securities. The fund invests in companies without regard to their size or market capitalization. It focuses on purchasing common stocks of companies located in or having primary operations in emerging market countries. The European mutual fund returned 33.5% in the last one year period.
S. Leigh Innes is the fund manager and has managed this European mutual fund since 2007.
U.S. Global Investors Eastern European (EUROX) seeks capital appreciation over the long term. The majority of its assets are used to purchase equity and equity related securities of companies from Eastern Europe. The European mutual fund has a ten year annualized return of 20.36%.
As of September 2010, this European mutual fund held 58 issues, with 8.89% of its total assets invested in Ak Sberegatelny Bank Sberbank.
Henderson European Focus A (HFEAX) invests the majority of its assets in equity securities of European companies. Companies invested in must be located in Europe or their principal office or major trading market must be located in the region. The European mutual fund returned 18.33% in the last one year period.
The European mutual fund has a minimum initial investment of $500 and an expense ratio of 1.61% compared to a category average of 1.72%.
To view the Zacks Rank and past performance of all European mutual funds, then click here.