These five actively managed global equity funds with top-ranked returns in 2023 appear to be on track for another year of sector-beating returns, according to data from FE fundinfo.
Despite the recent sell-off in large cap US tech stocks, global equity funds that have remained overweight these names continue to top the performance charts in 2024.
Shares in index-heavy weights Nvidia, Apple and Microsoft are still up 117%, 9.5% and 16.5% respectively even after the recent tech correction.
But not all the funds below are overweight these tech giants that continue to power markets higher in 2024. Some have managed to do so while underweighting these tech names.
One commonality between all the strategies below is that they are concentrated strategies with a growth-orientated investment approach.
This type of investing has bounced back after being battered in 2022 by rising interest rates and inflation.
Below are five global funds available for distribution in Hong Kong and Singapore* that delivered top-quartile returns in 2023 and have remained top-quartile year-to-date.
Guinness Global Innovators
The $1bn Guinness Global Innovators fund stands out as top performer with a top quartile year-to-date return of 11.5%, after a 38.5% return in 2023. It is managed by Ian Mortimer and Matthew Page.
Since the start of 2023, the fund has delivered a total return of 54.4%, compared with 23.5% from the Singapore peer average.
This strategy has benefitted from its overweight positioning in semiconductor firms at the start of 2023.
It was an early investor in Nvidia before the recent surge in AI chip sales launched it past the trillion-dollar mark; however the strategy has been recently trimming its position size as shares have run up.
PGIM Jennison Global Equity Opportunities
The $886m PGIM Jennison Global Equity Opportunities was another top-ranked performing strategy, up 14% year-to-date after a 40.1% return in 2023. It is managed by Mark Baribeau, Thomas Davis and Rebecca Irwin.
The fund is up 59.7% over both periods, versus the Singapore peer average of 23.5%.
Like most of the other top-performing funds it has benefitted from its large overweight allocation to tech stocks. Bets on top-performing healthcare names Novo Nordisk and Eli Lilly have also paid off.
Franklin Innovation
The $434m Franklin Innovation fund was another strategy that benefitted from its allocation to tech stocks. Managed by Matthew Moberg, it has delivered a 14.3% return year-to-date, after a 42.4% return in 2023.
Since the start of 2023, the fund has delivered a total return of 62.8%, versus 23.3% from the Hong Kong peer average.
This strategy has benefitted from its concentrated positions in tech darlings Nvidia (9.4%), Microsoft (7.6%) and Amazon (7.5%).
JPM Global Unconstrained Equity
The $502m JPM Global Unconstrained Equity fund was another top performer up 14.9% year-to-date, after a 37.4% return in 2023. It is managed by Rajesh Tanna, Caroline Keen and Timothy Woodhouse.
The fund has delivered a total return of 57.8% over both periods, versus 23.5% from the Singapore peer average.
This strategy has also large overweight positions in the same tech names, Nvidia (5.2%) Microsoft (6.3%) and Amazon (5.4%), albeit at slightly smaller position sizes.
Invesco Global Founders & Owners
The $77m Invesco Global Founders & Owners fund has the highest year-to-date return of the five funds, up 17.2%. It is managed by Joe Dowling.
This strategy is up 64.2% over 2023 and 2024 year-to-date, versus 23.5% from the Singapore peer average.
This fund, unlike the others, has a focus on companies with founders or individuals with material share ownership represented on the board or management.
Its biggest overweight holdings include Constellation Software (6.8%) and LVMH (3.6%), both of which still have its founders quite closely involved in running the company.
*The top-performing funds were measured in US dollar terms. The year-to-date performance is based on data from FE fundinfo ending 12/8/2024. The funds only includes fund vehicles that fall under the Hong Kong SFC Authorised Mutual or Singapore Mutual fund sectors as classified in the FE fundinfo platform.
