Investors interested in gaining exposure to the well-diversified and economically vibrant Pacific Basin may consider mutual funds that primarily allocate most of their assets in countries within this region. Mutual funds investing in Pacific Basin are expected to provide a blend of growth opportunities and low investment risk courtesy of high diversification in developed and developing markets. Prominent centers of production and fast-growing potential markets in this part of the world also make it an exciting investment destination.
Below we share with you three top-ranked Pacific Mutual Funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future.
Fidelity Pacific Basin (MUTF:FPBFX) invests a major portion of its assets in securities of issuers located in or economically tied to the Pacific Basin. FPBFX primarily focuses on acquiring common stocks of companies located across a wide range of Pacific Basin countries. Factors such as financial strength and economic conditions are considered before investing in a company. The Fidelity Pacific Basin fund has a five-year annualized return of 6.5%.
John Dance is the fund manager of FPBFX since Oct. 2013.
Commonwealth Australia/New Zealand (MUTF:CNZLX) seeks long-term growth of capital. CNZLX invests a large portion of its assets in depositary receipts represented by Australian and New Zealand issuers that are tied economically to Australia or New Zealand. CNZLX may invest in open-end, closed-end and exchange-traded funds. The Commonwealth Australia/New Zealand fund has a five-year annualized return of 4.5%.
As of January 2016, CNZLX held 45 issues with 18.14% of its assets invested in South Port New Zealand Ltd.
Matthews Korea Investor (MUTF:MAKOX) invests a large chunk of its assets in common and preferred stocks of South Korean companies. MAKOX focuses on mid-to-large-cap firms, but is not restricted to them. The fund seeks long-term capital appreciation. The Matthews Korea Investor is a non-diversified fund and has a five-year annualized return of almost 8%.
MAKOX has an expense ratio of 1.10% as compared to the category average of 1.87%.