TOL - 13th Jul, 2023
The top performing global equity funds for FY22/23
Most global equity funds started in the red but had strong gains in the final six months of the 2022-2023 financial year.
After the bloodbath in markets in 2022, it’s safe to say there’s been some recovery. Out of the 91 global managed funds in Livewire’s database, 4 finished the year more than 30% up, with the bulk of that generated in the last six months. Only 6 funds ended the year with negative returns. Investors have had to wear a lot of pain to get to this point though, with strong numbers in many cases a matter of regaining losses in 2022.
These numbers are a stark contrast to top figures last year.
The top 5 performing global equity funds for FY22 offered returns ranging from 0.42% to 9.10%, with the bulk in the red. Even six months ago, only 7 of the 86 global equity funds covered in Livewire’s database offered positive returns topping out at 11.81%.
So, who were the top performers for FY23?
We’ve pulled the data on a 1 year basis to find out the top ranked funds and safe to say, growth is topping the list this time around.
How we compile these lists
We pull our performance figures from Morningstar and also contacted the top performers to verify the numbers were correct.
The global equity funds are all listed on Livewire’s Find Funds menu (top right hand side of your webpage). This is not an exhaustive list of all global equities funds domiciled in Australia.
The filters we used are:
- In the “Fund type” box, select “Managed Funds”
- In “Asset Class”, select “Shares – Global”
- We then manually filtered results based on 1-year returns
It’s worth noting that the results can change again based on 5-year returns and it’s worth looking at longer term performance across cycles when researching funds or making investment decisions.
Top performing global equity funds
| Rank | Fund Name | Performance 1 Year % |
| 1 | Perpetual Global Innovation Share Fund | 43.62% |
| 2 | Hyperion Global Growth Companies Fund (Managed Fund) | 36.57% |
| 3 | Lakehouse Global Growth Fund | 35.60% |
| 4 | Plato Global Alpha Fund | 34.61% |
| 5 | Aoris International Fund B | 33.37% |
| 6 | GMO Quality Trust | 29.23% |
| 7 | Stewart Investors W Worldwide Leaders Sustainability Fund | 26.97% |
| 8 | MFG Core ESG Fund | 25.88% |
| 9 | Loomis Sayles Global Equity | 25.58% |
| 10 | Pella Global Generations Fund - Class B | 25.16% |
Note: Fund performance is typically viewed over longer timeframes than one year (i.e. three-year and five-year rolling periods). Past performance is not a reliable indicator of future return.
The tables above simply capture the best-performing global funds, in their respective categories, for the past 12 months. All data is supplied by Morningstar. If you would like to conduct your own research into top-performing funds, you can do so by clicking here.
Major themes
The main investment theme a year ago was a rotation to value, but how times have changed.
While value still has its place, growth has made a triumphant (albeit volatile) return up the charts in just six months. Much of the recovery in growth centres around big tech, the beneficiaries of the AI revolution and improved fundamentals after a number of big companies, like Amazon (NASDAQ: AMZN), initiated cost-cutting measures and reduced their employee bases after a tough 2022. You could also link the improving fortunes to a natural part of the cycle, where investors start to see opportunities in returning to growth.
Quality was also a focus of the top performers, with three of the top 5 incorporating this in their approach.
The top performing global equity funds
1. Perpetual Global Innovation Share Fund
The Perpetual Global Innovation Share Fund invests in companies that are benefiting from technological change and innovation. It holds 20-60 companies identified by fundamental research and aims to outperform the MSCI All Countries World Net Total Return Index (AUD) before fees and taxes over rolling three-year periods.
The portfolio manager is Thomas Rice.
As of May 2023, the top 5 stock holdings were
- Opendoor Technologies Inc (NASDAQ: OPEN) 10.4%
- NVIDIA Corporation (NYSE: NVDA) 7.6%
- CD Projekt SA (WSE: CDR) 5.6%
- Embracer Group AB Class B (STO: EMBRAC-B) 5.5%
- Microsoft Corporation (NYSE: MSFT) 5.3%
Managed Fund
Perpetual Global Innovation Share Fund
Global Shares
View
2. Hyperion Global Growth Companies Fund (Managed Fund) (ASX: HYGG)
Hyperion Global Growth Companies Fund (Managed Fund) aims to invest in high calibre growth-oriented businesses identified as having high quality business franchises, above average long-term growth potential, low levels of gearing and predictable long-term earnings streams. It aims to outperform the MSCI World Accumulation Index (AUD).
Hyperion’s lead portfolio managers are Mark Arnold and Jason Orthman.
The top 5 holdings as at end May 2023 were:
- Tesla (NASDAQ: TSLA) 12.9%
- ServiceNow Inc (NASDAQ: NOW) 12.5%
- Microsoft Corporation (NYSE: MSFT) 11.4%
- Amazon.com (NASDAQ: AMZN) 10.9%
- Workday (NYSE: WDAY) 7.0%
Managed Fund
Hyperion Global Growth Companies Fund (Managed Fund)
Global Shares
View
3. Lakehouse Global Growth Fund
The Lakehouse Global Growth Fund aims to provide long-term capital growth and to outperform the MSCI All Country World Index net total returns (AUD) (Benchmark) over rolling five year periods (after fees and expenses but before taxes) by focusing on listed shares of mid- and large-capitalisation companies across global equity markets.
The portfolio manager is Nick Thomson
The top 5 long holdings as at end May 2023 were:
-
Amazon.com (NASDAQ: AMZN) 8.3%
- ServiceNow (NASDAQ: NOW) 7.2%
- Constellation Software (TSE: CSU) 6.6%
- Mercado Libre (NASDAQ: MELI) 6.6%
- CoStar Group (NASDAQ: CSGP) 6.1%
Managed Fund
Lakehouse Global Growth Fund
Global Shares
View
4. Plato Global Alpha Fund
The Plato Global Alpha Fund aims to provide investors with long and short exposure to an actively managed, diversified portfolio of listed global equities. It uses a long-short strategy and aims to outperform the MSCI World Net Returns Unhedged.
The portfolio managers are Dr David Allen and Charles Lowe.
The top 5 long holdings as at end May 2023 were:
- Delfi Limited (SGX: P34) 0.61%
- MITIE Group PLC (LON: MTO) 0.59%
- Bayerische Motoren Werke AG Pref (ETR: BMW) 0.58%
- Hanza AB (STO: HANZA) 0.57%
- Dyna-Mac Holdings (SGX: NO4) 0.57%
Managed Fund
Plato Global Alpha Fund
Global Shares
View
5. Aoris International Fund B
The Aoris International Fund B invests in a single portfolio of 15 highly profitable, market-leading global businesses. Aoris aims to be quality-first, value investors. Its benchmark is the MSCI All Countries World Accumulation Index ex-Australia (AUD).
The portfolio managers are Stephen Arnold, Alfred Tadros and Delian Entchev.
It doesn’t publish the portfolio weightings for the top stocks given the concentrated size, however as at end May 2023, the holdings included: Accenture (NYSE: ACN), Amphenol (NASDAQ: APH), CDW (NYSE: CDW), Cintas (NYSE: CTAS), Copart (NYSE: CPRT), Costco (NASDAQ: COST), Experian (LON: EXPN), Graco (NYSE: GGG), Halma, Fastenal (NYSE: FAST), LVMH (EPA: MC), L’Oreal (EPA: OR), Microsoft (NYSE: MSFT), Nike (NYSE: NKE) and Tractor Supply (NYSE: TSCO).
Managed Fund
Aoris International Fund B
Global Shares
View
6. GMO Quality Trust
The GMO Quality Trust aims to generate total returns by investing in high quality equities. It classifies high quality as being those companies with established track records of historical profitability and strong fundamentals. It aims to outperform the MSCI World.
The portfolio managers are Tom Hancock, Ty Cobb and Anthony Hene.
The top 5 holdings as at end May 2023 were:
- Microsoft Corp (NYSE: MSFT) 8.7%
- Amazon.com (NASDAQ: AMZN) 4.3%
- UnitedHealth Group (NYSE: UNH) 4.1%
- Meta Platforms (NASDAQ: META) 4.1%
- Apple Inc (NASDAQ: AAPL) 4.1%
Managed Fund
GMO Quality Trust
Global Shares
View
Congratulations to the top performers for this financial year. As markets continue to change and we continue to await the world's most anticipated recession, who knows which styles and funds could reign supreme for the next financial year.
This wire forms part of a collection from Livewire Markets on the top performing funds for FY23. You can read about the top performing Australian equity funds in this wire by Chris Conway:
Funds
The top-performing Aussie equity funds for FY22/23
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Sara is a Content Editor at Livewire Markets. She is a passionate writer and reader with more than a decade of experience specific to finance and investments. Sara's background has included working at ETF Securities, BT Financial Group and Macquarie Group. She also holds a degree in psychology which drives a continued fascination with how human behaviour drives and is driven by investments and market activity.
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Sara is a Content Editor at Livewire Markets. She is a passionate writer and reader with more than a decade of experience specific to finance and investments. Sara's background has included working at ETF Securities, BT Financial Group and...
Sara is a Content Editor at Livewire Markets. She is a passionate writer and reader with more than a decade of experience specific to finance and investments. Sara's background has included working at ETF Securities, BT Financial Group and...
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