Across My Desk: International Funds

Ever wonder what kinds of funds investors are finding appealing this year? According to Financial Research Corporation (FRC) it's international ones.

Here's what a September 19, 2006 report from FRC stated:

"Three-quarters of the flows to mutual funds so far this year, or $113 billion, have been to international funds, Bloomberg reports.

Not only are mutual fund investors pouring money into international funds, but 72% of the money that pensions and endowments are investing, or $1.05 trillion, is also going to stocks overseas. This flood of investments is helping to push down the value of the U.S. dollar.

So far this year, the dollar has declined 7%; since 2003, it has dropped 21% in value."

Looking at how international funds have performed, in general, Lipper figures through Sept. 28, 2006, show the average total return on international funds range from 1.21 percent, year-to-date, for international mid-cap growth funds to 4.25 percent for multi-cap international funds.

As a point of reference, the average equity fund was up 2.79 percent over that same time period.