With a mix of both stable developed markets and emerging economies, the European region makes up one of the most diverse economic zones in the world. Large volumes of foreign direct investment and high commodity prices have ensured that emerging markets in regions like the Mediterranean and Eastern Europe have continued to grow at a fast pace. At the same time developed markets are on the verge of recovering from the global economic crisis. European mutual funds tap into the unique strengths of this vibrant region and are a natural choice for those seeking to grow their investments.
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.
T. Rowe Price European Stock (PRESX) invests the majority of its assets in companies located in European countries. It usually invests in at least five countries at any given time. Common stocks constitute its major investments. The European mutual fund has a five year annualized return of 4.04%.
Dean Tenerelli is the fund manager and has managed this European mutual fund since 2005.
U.S. Global Investors Eastern European (EUROX) seeks capital appreciation over the long term. A large proportion 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 21.25%.
As of December 2010, this European mutual fund held 52 issues, with 10.17% of its total assets invested in Sberbank of Russia OJSC.
Fidelity Nordic (FNORX) invests primarily in securities with economic linkages to the Nordic region. Not more than 35% of its assets may be allocated to an industry which makes up more than 20% of the Nordic market. The European mutual fund returned 24.58% in the last one year period.
The European mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.10% compared to a category average of 1.69%.
Henderson European Focus A (HFEAX) seeks long-term capital growth. The fund 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 has a three year annualized return of 7.03%.
Stephen Peak is the fund manager and has managed this European mutual fund since 2001.
Columbia European Equity A (AXEAX) invests a large proportion of its assets in equity securities of growth oriented European companies. It focuses on acquiring securities issued from mature markets, but may also invest in emerging market stocks. The European mutual fund returned 22.02% in the last one year period.
The European mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.41% compared to a category average of 1.69%.
To view the Zacks Rank and past performance of all European mutual funds, then click here.