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5 Zacks Best-Rated Global Mutual Funds

The key benefit that global mutual funds provide is diversification since they invest in overseas markets while also holding domestic equities. Thus, they make good additions to a portfolio weighted in favor of domestic investments. The tepid economic climate in mature markets such as Europe and the US has led global fund managers to look for better opportunities in emerging markets which may also imply dealing with greater volatility. However, it has been observed over the years that a judicious combination of foreign and domestic investments generate better returns at lower levels of risk.

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. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds.

AllianceBernstein Global Value A (ABAGX) invests largely in diversified portfolio of equity securities of established companies. These companies are selected from more than 40 industries, developed nations and emerging economies, including the U.S. The fund invests a minimum of 40% of its assets in securities of non-U.S. companies. The fund generally invests in companies established in at least three countries such as Europe, Canada, Australia, and emerging market countries, including the U.S. The global mutual fund returned 13.2% over the last three-year period.

As of September 2014, this fund held 123 issues with 1.93% of its assets invested in Pfizer Inc.

AllianzGI Global Natural Resources A (ARMAX) seeks long term capital growth. The fund invests a major portion of its assets in equity securities of companies involved in research, development, manufacturing, extraction, and distribution of materials, energy or goods related to the Agriculture, Energy, Materials or Commodity-Related Industrial sectors. The global mutual fund returned 3.8% over the last three-year period.

Paul D. Strand is the fund manager and has managed the fund since 2004.

Invesco Global Small & Mid Cap Growth A (AGAAX) invests a lion’s share of its assets in small and mid-cap companies throughout the world. It invests in a minimum of three countries. A maximum of 35% of its assets may be invested in firms from emerging economies. The global mutual fund returned 13.4% over the last three-year period.

As of June 2014, this fund held 100 issues with 3.34% of its assets invested in DCC PLC.

Fidelity Mid Cap Value (FSMVX) seeks capital growth over the long run. The fund invests a large portion of its assets in mid cap companies all over the globe having market capitalizations identical to those included in the Russell Midcap Index or the S&P MidCap 400 Index. It may also invest in large and small cap companies. The global mutual fund returned almost 23% over the last three-year period.

The fund has an expense ratio of 0.8% as compared to category average of 1.23%.

Guinness Atkinson Global Innovators (IWIRX) invests in equity securities of companies that are believed to be poised for advances in technology, communications, globalism or innovative management fields. It invests in companies from developed stock markets across the world and in emerging economies in the Far East. The non-diversified global mutual fund returned 22.8% over the last three-year period.

As of June 2014, this fund held 30 issues with 4.28% of its assets invested in Shire PLC.

To view the Zacks Rank and past performance of all global mutual funds, investors can click here to see the complete list of funds.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.


Read the analyst report on ABAGX

Read the analyst report on ARMAX

Read the analyst report on AGAAX

Read the analyst report on FSMVX

Read the analyst report on IWIRX


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