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 times 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 tap into the strengths of 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.
Wells Fargo Advantage Intrinsic World Equity A (EWEAX) seeks capital growth over the long term. The fund invests the majority of its assets in not less than three countries at the same time, including the U.S., investing a maximum of 25% in a single country. Equity securities constitute the majority of its investments. The global mutual fund returned 15.81% in the last one year period.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.46% compared to a category average of 1.49%.
Oppenheimer Global Opportunities A (OPGIX) invests in a wide range of equity securities worldwide. The fund focuses on acquiring stocks, but may also purchase debt securities. Not more than 25% of its assets may be invested in securities with lower ratings. The global mutual fund has a three year annualized return of 9.19%.
As of December 2010, this global mutual fund held 115 issues, with 7.87% of its total assets invested in Nektar Therapeutics Inc
Fidelity Worldwide (FWWFX) seeks capital appreciation. The fund purchases securities issued from any nation across the world. It focuses on acquiring common stocks and diversifies investments across various countries and regions. The global mutual fund has a ten year annualized return of 6.89%.
William Kennedy is the fund manager has managed this global mutual fund since 2006.
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 returned 10.59% in the last one year period.
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 1.39%.
American Funds Capital World Growth & Income A (CWGIX) seeks capital growth over the long term along with current income. The fund primarily invests in common stock of companies worldwide. These securities denominated in U.S. dollars or other currencies. Cash and money market instruments are also part of the fund’s portfolio. This global mutual fund has a five year annualized return of 4.28%.
Jeanne M. Carroll is the fund manager and she has managed this global mutual fund since 2004.
To view the Zacks Rank and past performance of all global mutual funds, then click here.