Global Funds Worth Your Cash

Global funds are particularly difficult to run, thanks to the sheer volume of stocks fund managers have to choose from, so which geographically diversified funds are any good?

Emma Wall 2 September, 2014 | 12:01AM

What do you expect from a global equity fund? Geographical diversification? For an alarming number of these funds, that simply is not the case.

Passive fund provider Vanguard offers a global fund as part of its low-cost LifeStrategy range that has 42% invested in the US and 25% in the UK. While investors are sure to be pleased with the 0.24% annual charge, those expecting equal geographical weighting may be disappointed.

Vanguard say that their research reveals investors in every country have historically displayed a significant bias towards their home markets.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Global Income R Acc1.09 GBP-0.74
Fundsmith Equity R Acc4.74 GBP0.04
Jupiter Merlin Worldwide Portfolio Acc317.16 GBP-1.16
Veritas Global Focus A GBP50.25 GBP-0.20

About Author

Emma Wall  is former Senior International Editor for Morningstar

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