Atchie’s top 5: Core global equity blend funds

The benchmark core equities sector is a fundamental sleeve in any sophisticated portfolio. Most profess top quartile returns, but which five have genuinely outperformed the market over a three year term?

In this regular column, we will review the performance of specialist fund managers from different corners of the investment universe using Atchison’s proprietary approved product monitoring system. Note that past performance is no guarantee of future performance, and these articles are not intended as financial advice.

In the realm of global investments, Core Global Equity Blend funds stand out for their focus on larger cap companies.

As of October 31, 2023, five funds from the ‘Core Global Equity Blend’ category from the Atchison Approved Product List have shown notable performance, standing out from a pool of circa 200 funds monitored.

Determined on a 3-year annualised performance net of fees these funds exceeded the average category return of 5 per cent, marking their distinct performance when measured against peers within this specific category.

The five best performers offered a diverse spread, with each significantly outperforming the benchmark, which delivered just 5 per cent per annum. They were the PM Capital Global Companies Fund with a 22.32 per cent return, the Ironbark Royal London at 21 per cent, Capital Group Global Equity at 17.08 per cent, Invesco Wholesale Global Opportunities at 16.11 per cent, and Macquarie Arrowstreet Global Equity Funds at 16.10 cent.

Fund approach

Each fund employs a relatively unique approach, yet there are some commonalities.

PM Capital and Ironbark Royal London favour a concentrated, high-conviction stock-picking strategy, focusing on a limited number of global equities.

Capital Group Global Equity and Invesco Wholesale Global Opportunities adopt a fundamental research-based approach, emphasizing companies with strong financials.

Macquarie Arrowstreet uses a quantitative method, balancing between value and growth stocks. This variety in approaches reflects each fund’s distinct investment philosophy, from focused stock picking and fundamental research to diversified quantitative analysis.

Portfolio composition

The composition of these funds’ portfolios has been integral to their performance.

PM Capital’s and Ironbark Royal London’s focused investment in selected companies like Apollo Global Management and Microsoft has been a key factor.

Invesco’s emphasis on companies like Microsoft and Amazon indicates a tilt towards tech and financially robust firms.

Macquarie Arrowstreet’s diverse investments, including in tech giants and energy companies, show a broader portfolio strategy.

Top ten holdings

–NOTE Capital Group Global Equity is undisclosed–

PM Capital Global Companies Fund

Invesco Wholesale Global Opportunities

Ironbark Royal London Concentrated Global Shares

Macquarie Arrowstreet Global Equity