Diving for pearls: Nine global funds worth considering
25 Nov 16
With 267 funds, the Investment Association (IA) Global sector is second only in variety to its UK All Companies, which comprises 269 funds. It is one of the oldest and most popular sectors and also very diverse, both in terms of type of offering and also in terms of performance.
Assets under management
Fundsmith Equity, run by Terry Smith, has become a popular fund with a clear process, presented to investors in a different way. Smith sticks to high-quality large-cap businesses, with advantages that are hard to duplicate. They do not require much leverage and have high cashflows, are resilient to change and their valuations are attractive. It is concentrated with just 28 holdings, is long term with very low turnover. It has been in a sweet spot with investors for some time.
A concentrated fund spread across market caps with the aim of delivering an above-average yield (2.9% presently), M&G Global Dividend has had a tough time in the past three years as its value stance led to holding stocks in poor-performing sectors. However, its form has now picked up. Funds under management has contracted sharply but it is not down and out.
Threadneedle Global Select is a large-cap growth fund, so no surprise to see information technology as the largest sector weighting, an underweight to financials and an overweight to healthcare. Threadneedle has an experienced and well-resourced team, which, in true global equity style, seek out the best growth opportunities from around the world. Performance has been consistent this past year.
Tags: Investment Association | Investment Strategy | Rowan Dartington
