International fund

(redirected from International Mutual Funds)

International fund

A mutual fund that can invest only outside the United States.

International Fund

A mutual fund that invests predominantly or exclusively in securities issued in foreign countries. An international fund does not necessarily concentrate on any single country, but it does not invest in securities from the country in which it operates. An international fund should not be confused with a global fund, which invests in both domestic and foreign securities.

international fund

A mutual fund that invests in the equity securities of companies located outside the country in which the fund is located. Compare global fund.
What is the best method of investing in foreign securities?

Investing directly in international markets can be very expensive, as transaction fees are generally higher than in the United States. Additionally, smaller foreign markets often charge a higher premium when trading stocks. Other considerations are lack of liquidity and information in some foreign markets, different market operations, and withholding taxes. It is therefore recommendable that the novice investor invests in either global or international mutual funds. Although fund companies also pay transaction and exchange fees, they get better rates because of larger transaction sizes. Finally, international fund managers have the expertise it takes to maneuver through foreign economic, political, and currency trends. Also, fund managers have the ability to hedge against currency risks, thereby "insuring" part of your investment.

Thomas M. Tarnowski, Senior Business Analyst, Global Investment Banking Division, Citigroup, Inc.—Salomon Smith Barney, New York, NY, and London, UK

International fund.

This type of mutual fund invests in stocks, bonds, or cash equivalents that are traded in overseas markets, or in indexes that track international markets.

Like other funds, international funds have investment objectives and strategies, and pose some level of risk, such as the risk that currency fluctuations may greatly affect the fund's value.

Some international funds focus on countries with established economies, some on emerging markets, and some on a mix of the two.

US investors may buy funds that invest in other markets to diversify their portfolios, since owning a fund is usually simpler than investing in individual securities abroad.

A different group of funds, called global or world funds, also invest in overseas markets but typically keep a substantial portion of their portfolios in US securities.

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The globally respected international mutual funds provided by Takaud include Black Rock, BNP Paribas, Dexia, Robeco, Franklin Templeton, PIMCO, Pictet, and Schroder amongst others.
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On average, the regional mutual funds of emerging markets are smaller in size and have expense ratios that are lower than international mutual funds, but their portfolios are turnover at a higher frequency.
Managers of active international mutual funds have struggled to explain funds' tracking error versus their benchmarks caused by fair value portfolio pricing, said Diana Tidd, Managing Director and Head of the MSCI Index Business in the Americas.
Following Saudi Arabia's Capital Market Authority approvals, TCW and Amundi have begun managing seven of NCB Capital's AlAhli range of international mutual funds with a combined total of $550 million.
In this week's commentary we share with you 5 top rated international mutual funds.
More recently, Fortin and Michelson (2005) in their study of international mutual funds, also find no relationship between performance and expense ratio.
In other words, they make sense for risk-tolerant investors with longtime horizon who already hold two to three diversified international mutual funds, or for folks who have a windfall to invest.
The Nevis Island Assembly recently passed the International Mutual Funds Amendment Ordinance and paved the way for the registration and administration of international and mutual funds from Nevis as of Jan.
As the benefits of international diversification rely on the correlation structure of market returns, from various countries, performance of international mutual funds provides a basis for further tests on international investing (see Cumby and Glen (1990), and Droms and Walker (1994)).
This article takes a step toward filling this gap by studying the performance of a large sample of open-end international mutual funds during the 1990s.
47 (1)/99 -- allows international mutual funds to draw on a full menu of benefits if they base themselves in Cyprus.

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