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Solid Process Behind This Foreign-Stock Fund's Success

We upgraded Wells Fargo International Equity to Bronze from Neutral owing to its experienced managers and consistent approach.


Andrew Daniels: Bronze-rated Wells Fargo International Equity benefits from a well-codified approach and a complementary management team. Comanagers Dale Winner and Venk Lal seek firms that are undervalued relative to their long-term normalized profit levels. When the team finds a compelling investment opportunity, but is concerned about country-specific risk, it will tactically hedge that currency exposure. Wells Fargo does not place significant country- or sector-exposure constraints on the fund, so expect it to look quite distinct from its benchmark. 

Winner's background as a bottom-up stock-picker combined with Lal's background as a top-down risk management strategist make them solid counterparts here. The fund has been a solid performer since the team took control in 2012. In fact, during the trailing five-year period ended July 2017, the fund has outperformed its benchmark by more than 2 annualized percentage points as well as 86% of its foreign large-blend peers.

All told, this fund is a solid option for investors seeking exposure to international stocks.

Andrew Daniels does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.