QikReview: Top Foreign Mutual Funds

Continuing the QikReview series of mutual funds reviews, below are brief reviews of top "Foreign" mutual funds. In addition to these "Foreign" funds, I will also post reviews of "Europe," "World," and some other region-specific mutual funds.

Dodge & Cox International Stock (DODFX)

Category: Foreign Large Value
Rating: 5
Capital Gains Exposure: 10%
Assets: $50 bil
Expense Ratio: 0.66%
Turnover Ratio: 9%
Yield: 2.88%
Redemption Period: 0 days
Redemption Fee: 0.0%
3-Year Total Cost: $211
Minimum Investment: $2,500
Comments: Top-notch management team has produced outstanding returns over time. I like their interest in emerging markets, long-term value approach, and low costs. It's #1 in 5-year returns. It invests into Giant, Large, and Medium companies. It has only 2% in Cash. It has big presence in Japan (20), UK (14) and Western Europe. I don't think I like its very significant exposure to Japan. I like their top 25 holdings.

Fidelity Canada (FICDX)

Category: Foreign Large Blend
Rating: 5
Capital Gains Exposure: 30%
Assets: $4.3 bil
Expense Ratio: 0.97%
Turnover Ratio: 42%
Yield: 0.67%
Redemption Period: 90 days
Redemption Fee: 1.5%
3-Year Total Cost: $306
Minimum Investment: $2,500
Comments: This fund has done very well over time. Its ranks #1 among peers in 1-year, 5-year, and 10-year returns. It's #2 in 3-year returns. One concern is that it took a while for it to rebound from the last bear market, it was down in both 2001 and 2002. It invests into Giant (50), Large (36), and Medium (13) growth companies. 89% of assets are in Canada and 3% are in the U.S. Its major holdings are in Telecom (7), Business Services (10), Financials (26), Industrial Materials (17), and Energy (26). It has about 5% in Cash. I'm not too sure about its holdings, although some of its top holdings are showing up CGM Focus as well. If anything, I would pick CGM over Fidelity here.

Masters' Select International (MSILX)

Category: Foreign Large Blend
Rating: 5
Capital Gains Exposure: 8%
Assets: $1.9 bil
Expense Ratio: 1.06%
Turnover Ratio: 98%
Yield: 0.98%
Redemption Period: 180 days
Redemption Fee: 2.0%
3-Year Total Cost: $369
Minimum Investment: $5,000
Comments: This fund's returns are solid: #2 for 10-year returns and #5 for 3- and 5-year returns among peers. It invests into Giant (31), Large (41), and Medium (20) companies. It holds 5% in Cash. It invests in Healthcare (13), Consumer Services (12), Financials (21), Consumer Goods (12), and Industrial Materials (18). It has presence in Japan (13), the U.K. (12), France (12), Switzerland (9), China (7), Latin America (7), and North America (5). I'm not sure how much I like the Top 25 holdings. Also, it has 75 total holdings and only 25% of total assets in the Top 10 holdings. I don't think that I like 10 people managing a $1.9 billion fund, too many cooks in one kitchen.

T. Rowe Price International Discovery (PRIDX)

Category: Foreign Small/Mid Growth
Rating: 3
Capital Gains Exposure: 12%
Assets: $2.6 bil
Expense Ratio: 1.24%
Turnover Ratio: 68%
Yield: 0.68%
Redemption Period: 90 days
Redemption Fee: 2.0%
3-Year Total Cost: $393
Minimum Investment: $2,500
Comments: Middle-of-the-pack performance as far as total returns go. I'm not at all impressed by it's returns and volatility. This is a Mid-cap Growth fund that invests into Large (6), Medium (61), and Small (31) companies. It has exposure in Japan (16), the U.K. (15), India (7), Germany (6), and China (6). It's diversified among different categories with larger holdings in Consumer Services (11), Business Services (20), and Indistrial Materials (18). It holds 9% of assets in Cash. It has a whopping 207 holdings with a turnover rate of 68% and only 10% of total assets in the Top 10 holdings. It looks and acts more like an index fund although with a higher expense ratio.
I don't see much merit to this fund, it's not to say that it's inferior, but in my eyes it's rather average.

Other QikReviews:
Top Domestic Mutual Funds
Top Europe Stock Mutual Funds
Top Pacific/Asia ex-Japan Mutual Funds
Top Other Foreign Mutual Funds
Top Specialty-Precious Metals Mutual Funds
Top Specialty-Natural Resources Mutual Fund