- From an analysis of 517 Global funds, 87 consistently outperformed their sector peers, earning a top 4 or 5-star rating.
- 63% of the funds analysed consistently underperformed and received poor 1 or 2 star performance ratings.
- This analysis identifies 10 funds that have consistently ranked among the top performing funds in the IA Global sector over the past 1, 3 & 5 years.
- The 10 funds featured in this article have average 5 year returns of 134.74%. In comparison, the 5 year sector average was 89.61%.
In an increasingly interconnected world, global funds have become a cornerstone for investors seeking both growth potential and effective diversification. The IA Global sector, home to some of the most widely held investment funds in the UK, offers access to a broad spectrum of companies across regions, sectors, and economic cycles. With £222.7 billion in client assets, it stands as the largest and most invested sector in the UK retail market.
The appeal lies in its built-in diversification. By allocating across multiple geographies and industries, funds in this sector can provide a robust defence against localised volatility while benefiting from global economic trends.
In this article, we identify 10 of the top performing funds within the IA Global sector over the past 1, 3, and 5 years - identifying those that have delivered consistent outperformance. The complete downloadable report also offers a detailed analysis of all 517 funds in the sector, including their performance, sector ranking, and rating.
Global Funds Performance Summary
The IA Global sector is the largest of the 55 Investment Association sectors, representing 17% of total assets under management across the entire IA universe. It spans an extensive range of investment strategies and provides exposure to both developed and emerging markets.
Our analysis reviewed the performance of all 517 funds within this sector over the most recent 1, 3, and 6-month periods, assessing their ability to deliver competitive, risk-adjusted returns relative to sector peers.
Are analysis identifies, that of the 517 funds analysed 87 (17%) achieved a top-tier 4 or 5 star performance rating. This highlights the considerable variation in fund quality across the sector and underscores the importance of selecting quality funds and fund managers.
Conversely, 326 funds (63%) underperformed relative to their peers, reflecting the large proportion of funds on the market that struggle to maintain competitive performance.
Why the IA Global Sector is Ideal for Diversified Portfolios
The IA Global sector has long been a favourite among investors, largely due to the comfort and appeal of its broad exposure to international markets. With the ability to invest across a range of countries and industries, global funds offer an accessible route to diversification—an essential foundation for long-term investment success.
These funds typically hold shares in companies from both developed and emerging markets, allowing investors to benefit from the economic strength of regions like North America and Europe, while also participating in the growth potential of Asia, Latin America, and other developing economies. This geographic reach helps reduce reliance on any single market and provides a natural buffer against localised economic or political disruptions.
In addition to spanning global regions, IA Global funds invest across a wide spectrum of industries—from high-growth sectors like technology and healthcare to more defensive areas such as consumer goods and utilities. This blend helps smooth out returns over time by capturing different drivers of performance across various stages of the economic cycle.
However, while these funds have the freedom to invest globally, in practice many have a significant bias towards traditionally dominant markets—particularly North America. A large number of global funds are heavily weighted towards US equities, often concentrated in large-cap technology stocks. As a result, many funds that are labelled ‘global’ lack genuine global diversification, with performance often driven by a narrow subset of companies or regions.
This highlights an important distinction: while IA Global funds provide a strong starting point for diversification, true global balance is best achieved through a carefully selected portfolio of complementary funds. By blending funds with distinct regional, sector, and style exposures, investors can achieve a more comprehensive spread of risk and opportunity.
Diversification remains the cornerstone of efficient investing. High-quality investment firms understand that no single fund can effectively capture the full scope of global opportunity. Instead, they focus on constructing portfolios that combine different strategies to enhance resilience, improve consistency, and support stronger long-term outcomes across changing market conditions.
Best Performing Global Funds
The table below lists 10 of the best performing Global funds over the past 1, 3 & 6 months. Each fund has consistently delivered returns above the sector average and has been awarded a 5 star rating based on its overall performance.
Performance figures are cumulative and up to end of March 2025
Thornbridge Global Opportunities Fund
The Thornbridge Global Opportunities Fund has built a strong reputation as one of the top-performing funds in the IA Global sector. With £200 million in assets under management, it offers investors broad exposure to international markets, investing in companies of all sizes across a wide range of industries.
Over the past year, it delivered an impressive return of 14.99%, compared to the sector average of 3.88%. Its strong performance has continued over the last three years with a return of 65.65%, placing it 2nd out of 464 funds in sector. Over 5 years, the fund has returned growth of 155.57%, which was well above the sector average of 88.95%.
One of the key reasons for this strong performance is the fund’s flexible approach, which allows it to quickly adapt to changing market conditions and invest in areas showing the most promise. Its investments are spread across sectors like Consumer Goods and Services (38.5%), Technology and Media (22.9%), and Financials (21.2%), helping to manage risk and capture growth across different parts of the market.
The fund has a global outlook, with over half of its investments in the US and additional exposure to the UK, Netherlands, and Germany. Recent strong performers in the portfolio include Anglogold Ashanti, GE Vernova, EssilorLuxottica, and Arca Continental. Although some stocks like Nvidia and Apple dipped slightly, the fund remains in a strong position to keep delivering solid returns over the long term.
Invesco Global Equity Income (UK) Fund
The Invesco Global Equity Income (UK)fund is classified within the global equity income sector and focuses on investing in dividend-paying companies from around the world. The fund aims to deliver a combination of income and long-term capital growth, and it has established a track record of strong performance over multiple timeframes.
Over the past 12 months, it returned growth of 3.90%, outperforming the sector average, which fell by -9.17%. This relative strength during a broadly negative period for the sector demonstrates the fund’s ability to limit downside in weaker market conditions.
Across three years, the fund returned 49.73%, the second highest in its sector. This significantly exceeded the sector average of 27.01%, indicating strong and consistent performance during a period marked by market volatility and changing economic conditions.
Over five years, the fund has continued to deliver well above average results, with a total return of 146.78% compared to a sector average of 94.25%. This long-term performance places it among the top-performing funds in its sector.
The fund’s results reflect a consistently applied global income strategy that has delivered competitive returns over both short and extended periods. While performance will vary over time, the historical data highlights a strong track record relative to its sector.
Geographically, the fund is weighted towards developed markets, with major exposure to the United States and the UK, along with positions in Canada, Italy, France, Hong Kong, and Denmark. This global reach offers access to thriving economies and could add further strength to the fund’s long-term growth prospects.
Fidelity Sustainable Global Equity Income W Acc
Launched on 31 January 2004, the Fidelity Sustainable Global Equity Income Fund has exhibited impressive performance within the global equity income market. Over the past 1, 3, and 6 months, it returned 13.40%, 37.85%, and 140.48% respectively. These results are well ahead of the sector averages of 9.17%, 27.01%, and 94.25%, highlighting the fund’s ability to generate superior returns compared to its peers.
The fund invests in a concentrated portfolio of between 30 and 50 high-quality, dividend-paying companies across global markets. Using a bottom-up investment process, the manager focuses on sustainable businesses with predictable earnings, low financial leverage, and stable business models. Its strategy aims to deliver consistent returns across market cycles while managing volatility and limiting downside risk.
As part of the Fidelity Sustainable Family, at least 70% of the fund’s assets are invested in companies that meet strict environmental, social, and governance (ESG) criteria. It also follows a clearly defined exclusion policy and may invest in emerging markets where suitable.
With £162 million in assets under management, this fund is particularly appealing for ethically conscious investors looking for moderate equity risk. Despite being one of the smaller funds in the sector, it has consistently ranked among the top performers in recent years, thanks to its focus on ESG principles, experienced management, and strategic sector allocation.
Dodge & Cox Global Stock Acc GBP
The Dodge & Cox Global Stock Acc GBP Fund has built a strong reputation as one of the top-performing global equity funds in its sector. With £4.42 billion under management, it also ranks among the largest, reflecting both investor confidence and a consistent track record of strong results.
The fund’s main objective is long-term growth, achieved through a carefully selected portfolio of global shares. It invests across the United States, developed markets, and emerging economies, using in-depth analysis to find large and mid-sized companies that appear undervalued relative to their potential. This value-driven approach focuses on identifying businesses that are temporarily out of favour but have strong fundamentals and the capacity for long-term recovery and growth.
Recent performance has been particularly impressive. The fund returned 8.07% over the past year, 29.95% over three years, and 135.13% over 5 years - consistently ahead of the IA Global sector averages of 3.88%, 19.09%, and 88.45%, respectively. This outperformance highlights the effectiveness of its strategy during a period of heightened market volatility.
The fund’s strong returns have been supported by targeted exposure to financials, healthcare, and industrials - sectors that have shown resilience and upside potential in the current economic climate. The fund is geographically diversified, with exposure across the US, Europe (excluding the UK), emerging markets, and the UK, helping reduce reliance on any single region.
With an ongoing charge of 0.63%, the fund is also competitively priced for an actively managed global strategy.
M&G Global Strategic Value I Acc GBP
Introduced on 17 February 2012, the M&G Global Strategic Value I Acc GBP Fund currently oversees £401.01 million in assets. Its core aim is to achieve a combination of capital growth and income that exceeds the MSCI ACWI Index over any 5 years, after deducting ongoing charges. At least 80% of its assets are allocated in shares of companies across global markets.
The fund’s recent performance reflects its upward momentum and a clear lead over its sector peers. Over the past year, it returned 14.42% comfortably above the sector average of 3.88%. Over three years, the fund returned growth of 42.11%, more than twice the sector average of 19.09%, while its 5 year return of 135.05% was markedly higher than the sector average of 88.45%.
A key element driving the fund’s performance is a value-oriented strategy, investing in companies whose share prices may not fully reflect their business valuation, with the aim of identifying undervalued opportunities at the time of investment.
Strategic holdings in consumer goods, technology, and healthcare, such as Tesco and Bristol-Myers Squibb, have also yielded strong returns. In addition, the fund’s regional allocation has also been influential in recent gains. Its portfolio is tilted towards developed markets, most notably the United States, United Kingdom, and Japan, which have provided a favourable backdrop for equity growth over the period.
L&G Global 100 Index Trust
As its name implies, the L&G Global 100 Index Trust is a passively managed index fund designed to track the performance of the S&P Global 100 Index. It achieves this by investing almost entirely in the shares of the 100 companies comprising the index.
Managing £2.02 billion in assets, the fund has grown in popularity over recent years—supported by its resilience and consistent results through varied market environments. With an ongoing charge of just 0.14%, it stands among the lowest-priced options in its sector - offering an accessible, diversified gateway to large-cap global equities.
The fund's performance has been impressive across multiple time frames, consistently outpacing its peers in the IA Global sector. Over the past year, it returned 11.10%, well ahead of the sector average of 3.88%. Across three years, it achieved growth of 43.05%, more than double the sector average of 19.09%, with its 5 year return of 134.04% again outperforming the sector average of 88.45%.
Much of the fund’s success also stems from its diversified portfolio, particularly its substantial 41.5% allocation to the Information Technology sector, which includes globally dominant firms such as Apple, Microsoft, Nvidia, and Amazon.com. These industry giants—renowned for their market leadership, innovation, and financial strength have played a central role in the fund’s strong returns.
Invesco Global Ex UK Enhanced Index (UK)
The Invesco Global ex UK Enhanced Index Fund (UK) is an actively managed fund that seeks to deliver capital growth and outperform the MSCI World ex UK Index over rolling 5 years.
With £138 million of assets under management, the fund invests at least 80% of its assets in shares or other equity-related securities of companies worldwide, excluding the UK. It employs a systematic, factor-based investment process focusing on three key factors: Momentum, Quality, and Value. This framework is designed to enhance returns while maintaining a risk profile closely aligned with its benchmark.
The fund’s strategy has driven the fund to achieve 1, 3 & 5 year returns of 9.47%, 38.71%, and 128.29%. In comparison, the sector averages were 3.88%, 19.09%, and 88.45%, demonstrating the fund’s ability to consistently outperform its peer group. These results position it among the best-performing global funds of recent years.
The fund has benefited from its disciplined investment strategy, concentrating on core sectors such as technology, financial services, and industrial. Its portfolio is predominantly tilted towards developed economies, with 66.6% allocated to the United States, along with notable allocations to Japan and other international markets. These aspects have helped fuel the fund’s growth. Its low ongoing charge of 0.23% also offers a cost-efficient way to access a globally diversified portfolio of high-quality equities.
Schroder Global Recovery
The Schroder Global Recovery fund is also actively managed and is designed to deliver capital growth that exceeds the MSCI World (Net Total Return) Index (after fees) over three to five years.
With approximately £984.52 million in assets under management, it targets companies worldwide that are trading below their intrinsic value relative to long-term earnings potential.
Over the past 1, 3, and 5 years, the fund has delivered impressive returns of 12.23%, 35.73%, and 126.33%, respectively well above the sector averages of 3.88%, 19.09%, and 88.45% for the same periods.
This recent success is driven by its balanced sector allocation and broad geographical exposure, spanning key markets such as the United States, Eurozone, and the United Kingdom. Top holdings such as BT Group, Molson Coors, and Standard Chartered have also supported the fund’s returns.
As an actively managed strategy, it has shown a consistent ability to respond to changing market conditions to optimise returns and manage risk effectively within the global equity market.
Jupiter Merian Global Equity
The Jupiter Merian Global Equity Fund has consistently been one of top performing global funds. Its recent results have been particularly compelling, delivering a 1 year return of 10.68%, nearly three times the sector average of 3.88%. Over three years, it generated a cumulative gain of 39.66%, more than double the sector average of 19.09%, while the 5 year return of 126.01% substantially outperformed the 88.45% sector average.
The fund aims to generate capital growth by delivering returns in excess of the MSCI World Index (net of fees, with dividends reinvested) over rolling three-year periods. It holds at least 70% of its portfolio in equities from developed markets and currently oversees £546 million in client assets.
The fund's managers follow a disciplined, systematic approach to stock selection, assessing factors such as valuation, financial strength, growth metrics, and market sentiment to uncover undervalued opportunities.
Its regional exposure reflects a strong reliance on North America which accounts for 74.9% of the funds asset allocation which could expose the fund to higher volatility than competing funds in the same sector.
abrdn World Equity Enhanced Index B Acc
The abrdn World Equity Enhanced Index B Acc Fund has built a solid track record since its launch in March 2015. Managing £244.77 million in assets, the fund aims to deliver returns slightly higher than the MSCI World Index - targeting an extra 0.75% per year over three-year periods, before charges.
Unlike standard index funds that simply follow the market, this fund uses a more refined approach. It still invests across a wide range of global companies like a typical tracker, but it makes small, carefully considered adjustments to improve overall returns. These changes are based on detailed analysis of company data, with the goal of adding value without taking on too much extra risk.
Its performance has clearly reflected the success of this method. Over the past year, the fund returned 12.23%, compared to the IA Global sector average of just 3.88%. Over three years, it returned 35.73% versus a sector average of 19.09%, and its five-year return of 126.33% stands well above the sector average of 88.45%.
Notably, the fund has less exposure to North America than many of its peers, with around 64% invested in the region. This is lower than typical global funds, many of which have upwards of 70% in North American stocks, particularly in large-cap US technology companies. Despite this lower weighting, the fund has kept pace - and often outperformed - thanks to strong stock selection and effective diversification across other developed markets.
Summary
With more than £222 billion invested, the IA Global sector is the most widely used sector among UK investors—and with good reason. Global funds offer access to a broad mix of regions and industries, providing the diversification many investors seek for long-term growth and stability. But not all global funds deliver consistent value, and the variation in performance across the sector is significant.
Our analysis of 517 global funds found that just 17% consistently outperformed their peers over the past 1, 3, and 5 years, earning a top 4 or 5-star performance rating. In contrast, more than 60% of funds underperformed, highlighting how crucial fund selection is in such a competitive landscape.
While global funds offer built-in diversification, our findings show that relying on sector labels alone can lead to missed opportunities or unbalanced exposure. Many so-called 'global' funds are heavily weighted to the US, particularly large-cap tech stocks, leaving investors more concentrated than they might expect.
For investors seeking reliable long-term growth, the key is not just to invest globally - but to invest intelligently. Identifying funds with a track record of consistency, strong risk-adjusted returns, and genuine diversification is essential. Our full report offers a detailed breakdown of all 517 IA Global funds, helping investors and advisers alike make more informed choices in a sector where quality varies widely, but the potential for outperformance remains significant.
Book a no obligation call with a Yodelar Investment adviser to find an optimal strategy that best suits your investment needs.
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