Top 4 European Funds - Mutual Fund Commentary
The European region is one of the most diverse economic zones in the world with a combination of mature developed markets and fast emerging economies. Foreign direct investment continues to grow in the region and this trend along with high commodity prices should ensure that emerging markets in regions like the Mediterranean and Eastern Europe will maintain their impressive growth rates. Developed markets are also showing signs of recovering from the recent economic slowdown. Since they harness the unique strengths of this vibrant region, European mutual funds are a natural choice for those looking for long term growth.
Below we will share with you 4 top rated European 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 European funds, then click here.
T. Rowe Price Emerging Europe and Mediterranean (TREMX) invests at least 80% of its assets in emerging European markets. These countries include those located in the Mediterranean region, including the Middle East and North Africa as well as those that make up the former Soviet Union. It is non-diversified and invests in stocks of companies with a wide rage of market capitalizations. The fund returned 162.76% over the last one year period and has a five year annualized return of 8.72%.
As of December 2009, this European fund held 42 issues, with 5.97% of its total assets invested in Magnit - Open Joint Stock Company.
Henderson European Focus A (HFEAX) seeks capital appreciation by investing the majority of its assets in European companies. It invests in companies of different sizes and focuses on stocks with the potential for capital appreciation. The fund has a five year annualized return of 9.35%.
Stephen Peak is the fund manager and he has managed this European fund since 2001.
U.S. Global Investors Eastern European (EUROX) investing in securities of issuers located in Eastern European countries, focusing on emerging markets in the region. These securities include common and preferred stock, convertible securities and depository receipts. It is non-diversified and invests at least 25% of its assets in companies in the oil, gas or banking sector. It is a no-load fund and seeks long-term capital growth.
This European fund returned 107.94% last year and has a ten year annualized return of 13.65%.
Fidelity Nordic (FNORX) invests the majority of its assets in Danish, Finnish, Swedish and Norwegian securities. It may also invest a relatively smaller share in securities from countries apart from these. Up to 35% of its assets may be invested in a sector that makes up more than 20% of the Nordic regional market. The fund returned 58.83% in the last one year period.
The European fund has a minimum initial investment of $2500 and an expense ratio of 1.15% compared to a category average of 1.72%.
To view the Zacks Rank and past performance of all European funds, then click here.
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 at http://www.zacks.com/funds/mutualfund/
