First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. From the top trending category, we select the top three funds with the highest one-year trailing total returns. To ensure the quality and staying power of funds, we only look at those mutual funds with a minimum of $250 million in assets and a track record of at least three years. We also remove those mutual funds that are closed to new investors and are not available for investment outside registered accounts such as retirement or 529 accounts.
In this week’s edition, we analyze the top three international funds. These types of funds specialize in investing globally, excluding U.S. markets. They may be globally broad or specific to a certain region. Typically, emerging and developed market equities and/or bonds are included while less than 5% of assets are held in U.S. securities.
Our breakdown of each fund includes key aspects such as one-year performance, fund expenses, investment style, and management teams to give you an overview of how these funds hold up against their peers.
Be sure to check out the International Funds page to find out more about the other funds in this category as well.
Trending Funds
1. Fidelity China Region Fund (FHKCX)
The top fund this week is offered by a staple of the mutual fund industry – Fidelity. The China Regional Fund, FHKCX, has a stellar one-year return of 32.81%. The relatively low expense ratio of 0.95% makes it the cheapest fee-wise for investors on our list.
As the name of the fund implies, the principal investment strategy of the fund is to invest at least 80% of its assets in China, Taiwan, and Hong Kong. It also invests up to 35% of its assets in any industry that accounts for more than 20% of the Chinese, Taiwanese, and Hong Kong markets. It is benchmarked to the MSCI Golden Dragon Index.
The fund is co-managed by Ivan Xie and Stephen Lieu, who have been managing the fund since April 2018.
Holdings in the fund’s portfolio include emerging market equities (90.74%), developed market equities (5.91%), domestic equities (2.43%), and cash assets (0.92%). Regional diversification is primarily emerging Asian markets (90.67%) with other developed markets at 8.35%.
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Most investors are probably not familiar with the name Matthews Asia when it comes to mutual fund families. MPACX comes with a one-year return of 18.58%. It also has a moderate expense ratio of 1.09%.
The fund’s investment strategy is to seek long- term capital appreciation by investing at least 80% of its assets in Asian Pacific emerging and developed markets. It focuses on equity holdings but may also include investments in convertible securities. The benchmark portfolio is listed as the MSCI All Country Asia Pacific Index.
The portfolio manager of the fund is listed as Taizo Ishida, who manages the company’s Asia Growth, Emerging Asia, and Japan Strategies.
Regional investments in the fund’s portfolio are listed as Japan (40.3%), China/Hong Kong (35.2%), Australia (5.7%), the United States (4.5%), and India (3.3%). The top five holdings in the fund are Wuxi Biologics Cayman, Inc., Bilibili, Inc., PT Bank Rakyat Indonesia Persero, Innovent Biologics, Inc., and BeiGene, Ltd.
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Our final spot in our top three list this week goes to another relatively unknown mutual fund family – Brown Capital Management. BCSVX shows a one-year return of 11.94%. It carries an expense ratio of 1.41%.
The fund’s investment strategy focuses on small cap stocks with a market capitalization of $500 million or less outside of the U.S. The portfolio typically holds between 40 to 65 securities and considers all global markets. It uses the MSCI All Country ex USA Small Cap Index as its benchmark portfolio.
Managing Director and Senior Portfolio Manager Duncan J. Evered and Maurice L. Haywood have been managing the fund since September 2015. Director and Portfolio Manager Kabir Goyal and Daniel J. Boston later joined the team.
The top five holdings in the fund are listed as M3 (5.85%), Inc., Descartes Systems Group, Inc. (5.07%), Ambu A/S (5.05%), Kinaxis, Inc. (4.94%), and Evotec SE (4.56%).
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The Bottom Line
Our expert analysis of the top three funds will give you insight into the best international funds that fit your portfolio needs.
And don’t forget to visit our News section to catch up with the latest news about mutual fund performance.
Note: Data as of June 18, 2020