You may have heard the term “global equities fund” tossed around, but what does it mean, and why should you invest in one?
Global equities funds could provide investors with several potential benefits, depending on the type of fund and how it is managed.
We will help you understand the basics of global equity funds, so you can make an informed decision about whether this investment is right for you.
Definition: What are Global Equity Funds?
Global equity funds are an ideal option for those who want a globally minded portfolio. This type of fund is designed to invest in companies located anywhere in the world, meaning that investors are free to explore opportunities across all continents when it comes to their finances.
From those that actively seeking out potential investments from a global base of securities, to those that passively tracking a single index, global equity funds could provide enhanced access and invaluable exposure for anyone wanting to expand their financial prospects.
Information about global funds
Investing in global equity funds is an attractive proposition for many investors. It offers the opportunity to diversify one’s portfolio while also providing exposure to larger, multinational companies or even small, emerging markets.
However, there are many different strategies and objectives associated with these funds and it can be challenging to identify the best fund for your needs.
To make that process a little easier, we have put together a helpful selection of three actively-managed funds worth considering.
Do not forget that doing research is still key – and you should always have an eye on your personal end goal before making any decisions. Investing wisely can take your portfolio to new heights!
A selection of funds you could go for
1. abrdn Global Smaller Companies
abrdn Global Smaller Companies fund was launched in early 2012 with the philosophy that smaller companies tend to outperform larger ones over the longer term.
The fund is managed by Kirsty Desson with an objective of identifying smaller companies from all around the globe – including emerging markets – which she believes have the best growth prospects.
The ‘Matrix’ screening tool is used to screen holdings based on four key factors: quality, growth, momentum, and value.
The best ideas list is then whittled down to a 50-60 stock portfolio. Information technology, industrials, and consumer discretionary are the three most prominent sectors according to the most recent fund factsheet*.
2. Invesco Global Focus
Invesco Global Focus is a high-conviction, focused fund designed to identify growth champions and drive long-term compounding in investor portfolios.
The portfolio of 35 stocks targets companies with clear competitive advantages and attractive valuation, like the current top 10 holdings which include Facebook, Mastercard, Novo Nordisk and Tencent*.
The manager’s approach is refreshingly simple: understand the structural trends which are changing the world and then invest in the best companies which are benefitting from these trends.
With professional investment management expertise overseeing the selection process, Invesco Global Focus is a prime choice for investors wanting the potential of significant returns over time from targeted growth stocks.
3. Morgan Stanley Global Brands
Morgan Stanley Global Brands is an investment fund with a unique focus. Its strategy revolves around investing in high-quality, market-leading companies that demonstrate the potential to deliver sustainable long-term returns.
William Lock, Head of International Equity at Morgan Stanley, leads the ten-person team that guides this portfolio which launched in October 2000.
Some of its most significant investments include well-known companies like Microsoft, Philip Morris International and Visa*.
In conclusion, global equity funds offer a diverse and dynamic investment opportunity for those looking to expand their portfolio and gain exposure to companies from around the world.
However, with many different strategies and objectives associated with these funds, it could be challenging to identify the best option for your needs.
Our selection of three funds worth considering, serve as a helpful starting point for your research. Remember, it is essential to conduct thorough research before making any decisions. With the right global equity fund, your portfolio could reach new heights of financial success.