If you are looking for a well-rounded investment portfolio, you could consider including global equities funds.
A global equities fund invests in companies from all over the world, giving your portfolio exposure to different economies and market conditions.
There are many global equity funds to choose from, but here are three that we think are worth considering. All these funds have performed well over the long term*, and they offer a variety of investment strategies.
So, if you are interested in diversifying your portfolio with global equities, check out these three funds.
Information About Global Funds
Investing in the IA Global sector provides a wonderful opportunity to gain broad exposure through international equities. Identifying the right fund for you can be challenging because there is a wide range of strategies and objectives, ranging from focusing on large multinational companies to investing in very small companies.
Doing research is key to finding the right fund that meets your needs. To help you with your research, we have selected three funds that are worth considering.
3 Global Funds That You Should Go For
1. abrdn Global Smaller Companies
The abrdn Global Smaller Companies fund is an excellent option for investors looking for a portfolio focused on growth and sustainable performance.
Launched in early 2012, this fund embraces the concept that smaller companies may often provide better returns than larger ones over the long-term. Kirsty Desson, its manager, uses a proprietary ‘Matrix’ screening process to select holdings and create a portfolio of 50-60 stocks across various countries, sectors, and markets.
Currently, the holdings are concentrated in IT, industrials, and consumer discretionary sector companies that have shown positive prospects for long-term growth**. Investors should take note of this portfolio’s thoughtful design and diversification which could prove highly beneficial in terms of sustaining strong returns over the years ahead.
2. CT Responsible Global Equity
The CT Responsible Global Equity fund is a great option for the green investor. Its managers, Jamie Jenkins and Nick Henderson have created an investment strategy focused on medium-sized companies of high quality that hold sustainable practices and standards, ranging from fossil fuel-free production to animal welfare and no involvement with weapons, alcohol, gambling, tobacco, or pornography.
Liberal restrictions set by the fund keep it rooted in ethical behaviour yet still allow investors the chance to benefit from growth across world markets. This selection of equities is a smart choice for investors wanting their values to remain consistent in their investments while striving to reach healthy returns.
3. Capital Group New Perspective
The Capital Group New Perspective fund has a long-standing pedigree in the global equity market, with the strategy tracing back more than four decades of experience.
The multiple-manager approach capitalises on nine portfolio managers plus a team of research analysts who come to the table with extensive knowledge.
This highly developed strategy allocates investments across start-ups and established multinationals such as Tesla, often considered a leading indicator for electric vehicle production, and AstraZeneca, one of the largest pharma companies in the world, to create a well-rounded portfolio of stocks that balance risk and reward potential**.
Conclusion
With a world of opportunities at your fingertips, diversifying your portfolio with global equities funds could be a smart move. Consider the abrdn Global Smaller Companies fund, CT Responsible Global Equity fund, and Capital Group New Perspective fund for a well-rounded and dynamic investment journey.
*Source: FE fundinfo, total returns in sterling, over ten years to 20 January 2023 for the abrdn global smaller companies and CT Responsible Global Equity funds and over 5 years for the Capital Group New Perspectives fund, which has a shorter track record in the UK market.
**Source: fund factsheet, 31 December 2022
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3 Global Equity Funds to Consider
