Best In­ter­na­tional Share Funds

Di­ver­si­fi­ca­tion into over­seas share­mar­kets has paid off for more ad­ven­tur­ous in­vestors

Money Magazine Australia - - CONTENTS -

Most in­ter­na­tional share funds con­tin­ued to pro­vide stronger re­turns than lo­cal share funds over the past 12 months, so this is just one rea­son why in­vestors seek­ing di­ver­si­fi­ca­tion need some ex­po­sure to over­seas shares.

The out­right win­ner of this cat­e­gory, Ar­row­street Global Eq­uity, has been the joint win­ner for the past three years.

The fund is avail­able both as a hedged and un­hedged op­tion and both have rated well. The fund is avail­able through the Mac­quarie Pro­fes­sional Se­ries.

It pro­vides ex­po­sure to a diver­si­fied port­fo­lio of global eq­ui­ties, which may in­clude emerg­ing mar­kets as well as small caps.

The fund doesn’t in­vest in to­bacco or “con­tro­ver­sial weapons” se­cu­ri­ties.

Ar­row­street’s stock se­lec­tion mod­els are de­signed to un­der­stand what is likely to im­pact stock prices and it uses the in­for­ma­tion to forecast in­di­vid­ual stock re­turns. It also aims to iden­tify par­tic­u­lar sig­nals or seg­ments of the mar­ket that ex­hibit the great­est mis­pric­ing.

“Ar­row­street Global Eq­uity is an ex­cel­lent quan­ti­ta­tive in­vest­ment strat­egy, driven by tal­ented re­searchers and a proven sys­tem­atic process,” says Morn­ingstar an­a­lyst El­liot Lu­cas.

One blem­ish is its rel­a­tively high fee com­pared with peers, he says. “How­ever, we think the qual­ity of this in­vest­ment of­fer­ing far out­weighs its cons, and be­lieve the unique and sus­tain­able method­ol­ogy em­ployed make it a ster­ling op­tion for global eq­ui­ties ex­po­sure.”

Four funds have tied for sec­ond place:

An­tipodes Global Fund – Class P has a high-con­vic­tion port­fo­lio of 30 to 60 stocks, fo­cus­ing on cycli­cal and struc­tural fac­tors, says Morn­ingstar an­a­lyst Ross MacMil­lan.

The fund is a sound op­tion be­cause of a knowl­edge­able port­fo­lio man­ager and de­tailed in­vest­ment process, he says.

An­tipodes Global Fund – Long Only P’s port­fo­lio is fo­cused on three ma­jor ob­jec­tives: cap­i­tal preser­va­tion, in­clu­sion of at­trac­tively priced stocks and strong in­vest­ment re­silience, says MacMil­lan. “The fund has nu­mer­ous solid char­ac­ter­is­tics, in­clud­ing an out­stand­ing port­fo­lio man­ager, well-con­sid­ered in­vest­ment process and struc­tured port­fo­lio con­struc­tion method­ol­ogy,” he ex­plains.

IFP Global Fran­chise has a com­pact port­fo­lio of 20 to 40stocks and both its hedged and un­hedged op­tion rated well with the re­search houses.

“One blem­ish is the fee. How­ever, that aside, the ex­pe­ri­enced team and con­sis­tent ap­pli­ca­tion of a dis­ci­plined in­vest­ment process make this an ex­cel­lent global eq­ui­ties strat­egy,” says Morn­ingstar an­a­lyst Michael Malseed.

Mag­el­lan Global Fund has been a joint win­ner for the past three years and it too is avail­able as ei­ther a hedged and un­hedged op­tion, with both op­tions rat­ing well. The fund has a con­cen­trated port­fo­lio of 20 to 40 com­pa­nies.

“Mag­el­lan’s high-con­vic­tion, risk-aware ap­proach is one of the best in the mar­ket, and this strat­egy is an ex­cel­lent op­tion for Aus­tralian in­vestors seek­ing ex­po­sure to in­ter­na­tional eq­ui­ties,” says Malseed.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.