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5 Top International Bond Mutual Funds

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Zacks says these international bond mutual funds should outperform their peers.

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The international bond market has come to represent a particularly lucrative opportunity for investors. Though the US bond market continues to attract investors, it has featured infrequently among the best performing international markets. Today international markets represent more than half of the world's fixed-income investment opportunities. Further, the presence of foreign fixed-income securities in a portfolio helps protect capital invested against currency fluctuations. With their widely diversified holdings, mutual funds offer a secure route to investing in the international bond market.

Below are the five highest-yielding Zacks #1 ranked international bond mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as these mutual funds are expected to outperform their peers in the future.

Mutual Fund Sec 30 Day Yield
T. Rowe Price Emerging Markets Bond 6.54%
J.P.Morgan Emerging Markets Debt 5.76%
Goldman Sachs Emerging Markets Debt A 4.88%
Fidelity New Markets Income 4.75%
Columbia Emerging Markets Bond A 4.1%
1. T. Rowe Price Emerging Markets Bond (PREMX) seeks to provide a high level of current income and invests heavily in emerging market debt securities. These could be both government securities and those issued by corporate entities. The international bond mutual fund returned 8.24% in the last one year period.

The international bond mutual fund has an expense ratio of 0.94% compared to a category average of 1.27%.

2. JPMorgan Emerging Markets Debt (JEMDX) invests in fixed-income securities issued from developing economies that are expected to provided high total return. The fund may also invest in high yielding bonds with low credit ratings. The international bond mutual fund returned 11.03% in the last one-year period.

As of April 2012, this international bond mutual fund held 178 issues, with 8.61% of its total assets invested in Russian Federation 7.5%.

3. Goldman Sachs Emerging Markets Debt A (GSDAX) seeks income and capital growth. The fund invests the majority of its assets in debt securities issued from emerging markets. The average maturity period of securities which make up the fund are identical to those included in the JP Morgan EMBI Global Diversified Index. The international bond mutual fund returned 11.56% in the last one year period.

The Fund Manager is Samuel Finkelstein and he has managed this international bond mutual fund since 2003.

4. Fidelity New Markets Income (FNMIX) invests a large proportion of its assets in emerging market securities and other instruments related to such markets. It is a non diversified fund and may also invest in other instruments. The international bond mutual fund returned 13.27% in the last one-year period.

The international bond mutual fund has an expense ratio of 0.86% compared to a category average of 1.27%.

5. Columbia Emerging Markets Bond A (REBAX) seeks both capital growth and income. The fund invests the majority of its assets in fixed-income securities issued from emerging markets. Not more than one-fourth of its assets may be utilized to purchase instruments issued by any single foreign government. The international bond mutual fund returned 9.6% in the last one-year period.

The Fund Manager is Nicholas Pifer and he has managed this international bond mutual fund since 2006.

Learn more about the Zacks Mutual Fund Rank here.

Editor's Note: For more from Zacks.com, click here.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
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