Top 5 International Funds - Mutual Fund Commentary

Foreign equity markets now make up more than half of the world’s equity market capitalization. Investors have gradually become aware of this fact and a clear preference for non-U.S. funds has emerged. Emerging market funds are of particular interest because of the untapped potential which they represent as well as their robust economic performance. With the advantages of expert management, diversification and disciplined approach, mutual funds are the best route towards international equity markets.

Below we will share with you 5 top rated international funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all international funds, then click here.

JHancock3 International Core A (GIDEX) seeks capital appreciation and current income. The majority of its assets are used to purchase equity securities of companies from developed markets apart from the U.S. It prefers not to hold cash or invest in money market instruments. The international fund returned 29.02% in the last one year period

The international fund has a minimum initial investment of $2,500 and an expense ratio of 1.62% compared to a category average of 1.43%.

Elfun International Equity (EGLBX) invests at least 80% of its assets in equity securities. The fund looks to diversify its investments across developed and emerging economies. It usually purchases foreign securities from at least three different countries. It may also debt securities. The international fund has a five year annualized return of 5.65%.

The Fund Manager is Ralph R. Layman and he has managed this international fund since 1991.

Nuveen Tradewinds International Value A (NAIGX) seeks long term capital growth. The fund primarily invests in foreign securities denominated in dollars or local currencies. Up to 25% of its assets may be used to purchase securities issued from emerging markets. The international fund returned 27.64% in the last one year period and has a five year annualized return of 5.96%.

The international fund has a minimum initial investment of $3,000 and an expense ratio of 1.68% compared to a category average of 1.43%.

Columbia International Value A (NIVLX) invests at least 655 of its assets in companies outside the U.S. with a market capitalization of more than $1 billion. Under normal circumstances, it invests in at least three countries other than the U.S. Up to 20% of its assets may be invested in emerging markets. The international fund has a ten year annualized return of 5.74%.

As of March 2010, this international fund held 86 issues, with 3.06% of its total assets invested in Portugal Telecom SA ADR.

Calvert World Values International Equity A (MGITX) seeks total return at relatively lower risk levels. A large share of its assets is invested in equity securities of foreign companies with large market capitalizations. It usually purchases common and preferred stock and depository receipts. The international fund returned 28.65% in the last one year period.

The Fund Manager is Lei A. Wang and he has managed this international fund since 2009.

To view the Zacks Rank and past performance of all international funds, then click here.

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