International fund

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.

References in periodicals archive ?
The development of the fourth Action Program to assist the countries of the Aral Sea basin has begun, the Neutral Turkmenistan newspaper reported on February 7 citing Arslan Rejepov, Turkmenistan's representative at the Executive Committee of the International Fund for Saving the Aral Sea (IFAS).
The exchange said the service was designed to cater to the requirements of international fund managers and improve market participation.
The Ministry of Agriculture submitted to Parliament a draft law on ratification of the agreement with the International Fund for Agricultural Development on financing the Access to Markets Project.
The acquisition of ADIFM, which manages a collective investment scheme, will also enable Charles Taylor to generate fund management revenues and further extend its range of professional services by entering the international fund administration services market.
BAHAWALPUR -- Commissioner Bahawalpur Division Capt (Retd) Saqib Zafar has said that the initiatives of International Fund for Agriculture Development in Bahawalpur Division would play a positive and constructive role to accelerate the process of Socio-Economic Development and IFAD project would serve as a catalyst to promote gender equality by providing assistance to the women of the area.
Funded by : EuropeAid Co-operation Office - EuropeAID, International Fund for Agricultural Development - IFAD
With profits expected to go up and the European Central Bank's quantitative easing programme making conditions better, banking stocks have become more popular with US international fund managers.
Muscat, Aug 30 (ONA) The 2-day training session on "National Capacities Building for the Preparation of Projects Submitted to the UNESCO International Fund for Cultural Diversity " will begin tomorrow (Monday) at Sultan Qaboos Grand Mosque on the occasion of the celebration of 10 anniversary of the Convention on the Protection and Promotion of the Diversity of Cultural Expressions 2005.
6 million to an international fund designed to help pressing humanitarian needs in Sudan, a UN official said Sunday.
The Ministry of Water and Environment discusses ways of combating illegal trade in wildlife with delegation from the International Fund for Animal Welfare - China.
An international fund, for instance, might invest in Germany's Volkswagen, Korea's Samsung, and Royal Dutch Shell, while a global fund might hold Volkswagen, Samsung, and the U.
The International Fund for Saving the Aral Sea, government of Uzbekistan and several international organizations have signed around 30 various documents to counter implications of the Aral Sea disaster, reports RIA Novosti citing First Vice Prime Minister Rustam Azimov as saying.

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