IVY FOREIGN EQUITY FUND $30.39 (CWA Rating: Conservative) outperformed the Morgan Stanley benchmark international index over the last 10 years. The fund gained 8.6%, and that was better than the Morgan Stanley benchmark’s gain of 6.7%. Ivy Foreign Equity Fund made 21.3% over the last year. The fund invests in companies based outside of Canada, but cuts risk by avoiding direct investment in emerging markets.
Ivy Foreign Equity is one of our top foreign fund recommendations. Still, we think non-U.S. international funds should make up at most 10% of the holdings of a conservative investor.
The fund’s top 10 holdings are Reckitt Benckister plc (UK household & healthcare products), Danaher Corp. (U.S. control products and tools), Essilor International SA (corrective eyewear), Henry Schein Inc., (U.S. healthcare), PepsiCo (U.S. food & beverage), William Demant (hearing health products), United Parcel Service (U.S. express carrier, Diageo plc (UK alcoholic drinks) and Ecolab Inc. (U.S. maintenance & cleaning products). The fund holds 42.1% of its assets in the U.S., 14.7% in the UK, 12.9% in France, 5.6% in Denmark, 5.0% in Canada and 3.0% in Switzerland.
This $2.9 billion fund holds 13% of its assets in cash.
Ivy Foreign Equity Fund is a buy.