Foreign equity markets have gradually acquired greater prominence and account for more than half of the world’s market capitalization. Investors are now aware of this fact and over time a clear preference for foreign mutual funds has emerged. Emerging market mutual funds are of particular interest because of the untapped potential of these countries as well as their growth performance. Foreign mutual funds are the best way to explore these markets since they have the advantages of expert management, diversification and a disciplined approach
Below we will share with you 5 top rated foreign mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
Templeton Foreign Small Companies A (FINEX) seeks long term capital growth. It invests the majority of its assets in smaller companies located abroad, including those based out of emerging market countries. The companies which it invests in have market capitalizations between $2 billion and $4 billion. The foreign mutual fund has a ten year annualized return of 6.97%.
Bradley Radin is the fund manager and has managed this foreign mutual fund since 2007.
Oppenheimer International Small Company A (OSMAX) primarily invests in companies located outside the U.S. or having primary operations in other countries. At least 80% of its assets are invested in small-cap companies. The foreign mutual fund returned 35.51% in the last one year and has a ten year annualized return of 12.31%.
The foreign mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.28% compared to a category average of 1.63%.
Invesco International Growth A (AIIEX) seeks capital appreciation over the long term. The fund primarily invests in marketable equity securities issued by foreign companies that are listed on a recognized domestic or foreign securities exchange. The foreign mutual fund returned 16.68% in the last one year period.
As of September 2010, this foreign mutual fund held 87 issues, with 2.21% of its total assets invested in Teva Pharmaceutical Industries, Ltd. ADR.
Calamos International Growth A (CIGRX) invests a large portion of its assets in foreign securities. The fund seeks out companies with strong growth potential and usually invests in larger companies. However, it may also consider investing in smaller emerging firms. The foreign mutual fund has a five year annualized return of 8.56%.
The Fund Manager is John Calamos, Sr. and he has managed this foreign mutual fund since 2005.
First Investors International A (FIINX) seeks capital growth. The fund focuses on acquiring common stocks and other equity securities issued by foreign companies. It primarily invests in large and mid-cap firms, but may also consider smaller companies. The foreign mutual fund returned 15.65% in the last one year period.
The foreign mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.20% compared to a category average of 1.55%.
To view the Zacks Rank and past performance of all foreign mutual funds, then click here.