This brings up another important point about the big differential in focus for the global funds universe, after all not every fund takes the high-conviction ‘best ideas’ approach.
For example, pull up a table of the worst performers over three years and it is resources and energy focused funds housed within the Global funds sector that dominate. Similarly, look to the best performers over the same time period and it is funds with a healthcare or small-cap slant that feature highly.
Top-perf Global funds – 3-years
Bottom-perf Global funds – 3-years
|Baillie Gifford Global Discovery||97||First State Global Resources||-36|
|Schroder Global Healthcare||93.1||M&G Global Basics||6.8|
|L&G Global Health & Pharmaceutical Index||90.1||First State Global Agribusiness||10.6|
|Old Mutual Global Equity||79.9||Aberdeen World Equity||15.8|
|Artemis Global Growth||73.2||Aberdeen Ethical World Equity||16.6|
Source: FE Analytics
However, there are some genuine multi-cap funds that deserve the plaudits, such as Ian Heslop, Amadeo Alentorn and Mike Servent’s £276m Old Mutual Global Equity Fund and Peter Saacke’s £413m Artemis Global Growth, though these are hardly what you might call high-conviction portfolios.
Perhaps it is these managers, more so than their more cavalier single-strategy peers, that should be celebrated as the true stockpicking stars.
A deeper look into the Global Equities sector features in the August edition of Portfolio Adviser, out now.