As investors are increasingly allocating assets to global equity funds, new data from Numis reveals, many funds have struggled to keep up with their benchmark over the long term.
Recent flow data for global funds from the firm shows that Global was the most popular regional equity category in the first ten months of 2020, with £4.5bn of net inflows. However, only 20% of global funds have managed to beat the FTSE World index over five years, according to Morningstar data. Furthermore, looking at annualised returns over ten years the data showed that just 18% managed to outperform the broader market. A look at the Investment Association Global sector shows a similar result, with the majority (69%) of global funds lagging over five years. The same proportion also...
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