Today we are featuring top-performing "European" equity mutual funds, which primarily invest in equity securities of companies based in Europe because emerging markets in Eastern Europe and the Mediterranean remain strong due to large foreign direct investment and high commodity prices. Developed markets are also on the verge of recovering from the financial crisis. P> Investors can find such European funds by checking out the entire list of the Zacks #1 Rank European Equity Funds. 4 Top European Picks Fidelity Nordic (FNORX) was incepted in November 1995. This European fund seeks seek long term capital growth. At least 80% of this European fund’s assets are invested in Danish, Finnish, Norwegian, and Swedish issuers as well as investments tied economically to the Nordic region. It primarily invests in common stocks and places up to 35% of its total assets in any sector that accounts for more than 20% of the Nordic market. The European fund has an expense ratio of 1.15% against a category average of 1.70%. As of October 2009, it has a portfolio turnover of 107% against a category average of 123%. The funds top holdings include Nordea Bank AB, Novo Nordisk AS and Nokia Corp. For the year 2009, the fund recorded lower returns than the Financial Times Stock Exchange (FTSE) Nordic Index. On October 1, 2009, the fund changed its benchmark index to the FTSE Capped Nordic Index. Melissa M. Reilly has been lead manager of the fund since May 2009. Before joining Fidelity in 2004, Reilly was a senior vice president and portfolio manager for Putnam Investments. Henderson European Focus A (HFEAX) seeks to achieve long-term capital appreciation. It was incepted in August 2001. A majority of the assets of this European fund, at least 80%, are invested in equity securities of European companies. It invests in companies with a wide range of market capitalizations and in companies which show significant potential for growth. The European fund has an expense ratio of 1.63% against a category average of 1.70%. As of October 2009, it has a portfolio turnover of 51% against a category average of 123%. The funds top holdings include Centamin Egypt, European Goldfields, and Virgin Media. The Fund performed well both in absolute terms and relative to the MSCI Europe Index over the third quarter of 2009. Stephen Peak has been lead manager of this European fund since August 2001. Peak joined Henderson in 1986 via Touche Remnant and has more than 34 years of experience in investment management and research. T. Rowe Price Emerging Europe & Mediterranean (TREMX) seeks long-term growth of capital through investments primarily in the common stocks of companies in the emerging market countries of Europe and the Mediterranean region. It was incepted in August 2000. The European fund invests companies in emerging European and Mediterranean economies. These markets include Eastern Europe, the Middle East, North Africa and the former Soviet Union. The European fund offers dividends on a quarterly basis in March, June, September and December and capital gains in December. The European fund has an expense ratio of 1.98% against a category average of 1.73%. As of October 2009, it has a portfolio turnover of 40% against a category average of 87%. The funds top holdings include BIM Birlesik Magazalar, CTC Media and Gazprom. For the 12-month period ended September 30, 2009, the fund has outperformed its benchmark index. S. Leigh Innes has been lead manager of the fund since September 2007. Innes has been with T. Rowe Price since 2002 and is a vice president of T. Rowe Price Group Inc. US Global East European (EUROX) seeks long-term growth of capital. It was incepted in March 1997. The European fund primarily invests in companies located in the emerging markets of Russia, the Czech Republic, Hungary, Poland and other countries in Eastern Europe. It evaluates each of these countries’ strengths based on currency rates, GDP growth, interest rates and political stability. The European fund has an expense ratio of 2.14% against a category average of 1.70%. As of September 2009, it has a portfolio turnover of 64% against a category average of 123%. The funds top holdings include Sberbank, Lukoil OAO, and Rosneft Oil Co. During the month of November 2009, the Eastern European Fund outperformed its benchmark, the MSCI Emerging Markets Europe 10/40 Index. Frank E. Holmes has been lead manager of the fund since November 2008. Holmes is CEO and Chief Investment Officer of U.S. Global Investors, Inc Discover Many More Funds Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information. By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Zacks Investment Research