Five global equity funds beating the MSCI World Index
Money Management used FE Analytics to find five funds investing primarily in global equities that have consistently outperformed the benchmark used by the majority of funds in the sector, the MSCI World Index.
The MSCI World index returned 15.56 per cent for five years, 11.81 per cent for three years, 24.71 per cent for the year to last month’s end and 12.31 per cent for the six months to 31 August, and has remained in the top quartile for all years bar three, where it dropped to second quartile.
Although the four FE Crown-rated Loftus Peak Global Disruption fund follows a benchmark-unaware strategy, it has consistently produced top-quartile returns for all time periods, hitting a peak for the year to 31 August of 32.13 per cent, putting it almost 10 per cent above the index.
The three-Crown BlackRock International Alpha Tilts fund, which actually aims to track the MSCI World ex Australian Index, has also outperformed the MSCI World Index by between 100 and 300 basis points across all timeframes.
AMP Capital’s Enhanced Index International Shares Core fund, which is rated three Crowns and designed to track the MSCI World Accumulation Index, similarly outperformed the MSCI World Index for all timeframes bar three years, producing returns of 15.58 per cent, 11.59 per cent, 24.43 per cent and 11.63 per cent for the five years, three years, one year and six months to 31 August 2018, respectively.
The fund invests in “FAANG-like” stocks, with Apple the top holding (2.25 per cent), followed by Microsoft (1.73 per cent), Amazon (1.65 per cent) and Facebook (1.18 per cent).
The three-Crown Advance International Shares Core fund also sat just above the index for all timeframes bar three years.
The CFS FirstChoice Wholesale Geared Global Shared fund was a top-quartile performer, returning 17.59 per cent, 14.76 per cent, 26.8 per cent and 11.57 per cent for the five years, three years, one year and six months to 31 August, respectively.
The chart below shows the performance of all funds as compared to the MSCI World Index across the five years to 31 August 2018.
AUTHOR
Anastasia Santoreneos
Recommended for you
Schroders has appointed a new chief executive as Simon Doyle steps down from the asset manager after 22 years.
Distribution of private credit funds through advised channels to retail investors will be an ASIC priority for 2026 as it releases the results of its thematic fund surveillance and guidance for research houses.
State Street Investment Management has taken a minority stake in private market secondaries manager Coller Capital with the pair set to collaborate on broaden each firm’s reach and drive innovation.
BlackRock Australia plans to launch a Bitcoin ETF later this month, wrapping the firm’s US-listed version which is US$85 billion in size.
