Biggest and Best Global Equity Funds

Global equities have experienced an impressive three year rally - but this is actually a modest feat compared to with five consecutive years from 2003 and nine years from 1991

Muna Abu-Habsa 2 July, 2015 | 8:00AM
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Largest Global Equity Funds

Orbis Global Equity is a Silver rated fund from Morningstar’s rated list of global equity funds. William Gray is the named manager on this fund but the investment process is heavily reliant on the work and support of the analyst team. The portfolio construction is based on a bottom-up approach with a value bias.

Veritas Global Focus is rated Gold by Morningstar and benefits from two experienced managers, Charles Richardson and Andrew Headley, who have been at the helm since launch in 2006. The fund's standout characteristic is the extent to which the managers aim to deliver real returns to investors. Indeed, preservation and growth of capital are considered to be of more importance than benchmark risk, and the portfolio is managed with little regard to an index. The managers use a thematic framework to help identify global industries that they believe will benefit from long-term structural drivers.

The increased importance of index funds is particularly noticeable on this list as Vanguard Global Stock Index and BlackRock ISF Developed World Index are the two largest offerings here. This may reflect the greater awareness of investors to the cost of investing in actively managed funds and hence becoming more attracted to low-cost options. Investors may also have lost patience with actively managed funds who, as a group, have found the heightened market volatility that has been evident in recent years to be a headwind to the achievement of consistent outperformance. While the combination of higher fees and weak performance may have disillusioned some investors, it could be worth considering whether having ever greater amounts of money following an index may reduce the efficiency of equity markets and create more opportunities for active managers.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Fundsmith Equity R Acc6.04 GBP-0.36Rating
Guinness Global Innovators C EUR ACC24.41 EUR-0.71Rating
iShares Dev Wld ESG Scrn Idx(IE)FlexDis£22.31 GBP-0.12Rating
JOHCM Global Select A EUR4.48 EUR0.03Rating
Vanguard Glb Stk Idx € Acc35.64 EUR-0.16Rating
Veritas Global Focus GBP Retl44.50 GBP-0.56Rating

About Author

Muna Abu-Habsa  is a senior investment research analyst at Morningstar

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