At approximately £170bn, IA Global is the largest standalone sector in the Investment Association, representing around 25% of assets in equity funds. It has been the best-selling category in four of the past five years and has now eclipsed IA UK All Companies in terms of assets managed, across more than 500 funds.
There have been six new launches in the sector this year, ranging from actively-managed strategies to passive index trackers. Global equity funds have become increasingly popular for investors looking to move away from geographical allocations, instead choosing to entrust managers with this burden.
See also: Five global equity funds boasting the highest yields and leading returns
While the number of launches has slowed on the back of a tougher environment for this part of the market, the global sector remains the most popular for sustainable or ESG-related products, representing a material percentage of overall assets in the category.
Passive funds are also on the rise within the asset class, as investors increasingly look to low-cost options when selecting global equities. Performance of passive funds versus their active counterparts had been relatively strong for a number of years. However, more recently, the top performers over the past three years have all been actively managed.
Read Charlie McCann’s funds to watch by assets under management, three-year performance and newcomers in October’s Portfolio Adviser magazine
