The £3.9 billion GMO Quality Investment Fund has emerged as the standout performer in the IA Global sector, consistently outperforming the MSCI ACWI index in each calendar year for the past decade, according to Trustnet’s latest analysis. This remarkable consistency has delivered an impressive 10-year return of 339.1%, the highest in the IA Global sector.
Managed by Tom Hancock, Ty Cobb, and Anthony Hene, the fund achieved these gains without excessive risk-taking. The portfolio’s 10-year maximum drawdown stood at just 19.6%, positioning it in the first quartile of its peer group. Additionally, it posted a downside risk score of 15.3%, placing it in the second quartile. However, its 10-year volatility of 14.5% ranked it within the third quartile for risk.
FE Investments analysts praised the fund for its “all-weather” approach, which has enabled it to consistently navigate market fluctuations. The managers’ strategic rotation of capital from overvalued assets to more attractively priced ones has allowed the fund to weather downturns more effectively than many competitors. The fund also earned high marks for its risk-adjusted returns, ranking second in the sector for its five-year Sharpe ratio as of September, further reinforcing its reliability.
Given its exceptional track record, analysts at FE Investments have recommended the GMO Quality Investment Fund as a “suitable cornerstone” for investors, particularly those focused on stock selection.
In the broader IA Global sector, the £2 billion L&G Global 100 Index Trust also showed consistent performance, outpacing the MSCI ACWI in nine of the past ten years. Although it fell short in 2017, when the fund returned 12.6% compared to the MSCI ACWI’s 13.2%, it still posted a solid 10-year return of 300.8%. Notably, the fund tracks the S&P Global 100 index, which emphasizes the world’s largest companies, including significant weightings in Apple, Nvidia, and Microsoft, benefitting from the recent surge in tech stocks.
Further diversifying the landscape, six funds performed well in eight out of the last ten years, demonstrating the strength of both active and passive strategies. Among these, the £10 billion Fidelity Index World, £9.5 billion HSBC MSCI World UCITS ETF, and Vanguard FTSE Developed World ex UK Equity Index all beat the MSCI ACWI. The indices focused on developed markets, which have outperformed emerging markets over the last decade, and the FTSE index also excludes the underperforming UK market.
While the passives showed solid returns, each had a year of underperformance, with Vanguard’s tracker slipping in 2017 and 2022, and HSBC lagging in 2016 and 2017. Over the past decade, Vanguard’s tracker emerged as the top performer, rising 235.5%, followed by HSBC’s ETF at 228.4%, and Fidelity’s index at 225.5%.
Active strategies also proved successful, with the £1.9 billion Schroder Global Equity Fund led by Alex Tedder achieving a top-quartile return of 258.9% over 10 years, despite underperforming in 2016 and 2022. The fund demonstrated strong resilience, outperforming the MSCI ACWI by 21.1% in 2020, a year marked by the pandemic’s challenges. Its robust risk management strategies, including a low maximum drawdown of 19.8%, made it one of the safest bets in the sector.
Schroder’s Global Sustainable Growth Fund mirrored this performance, outperforming in eight of the past ten years, though it too struggled in 2016 and 2024.
The GS Multi-Manager Global Equity Fund, despite underperforming in 2018, also posted a 10-year return of 228.8%, securing a first-quartile performance. However, it ranked in the second quartile for overall volatility and third quartile for maximum gains, with a maximum drawdown of 20.9%.
This analysis highlights the variety of strategies—both active and passive—that have enabled funds to outperform in the IA Global sector, emphasizing the importance of consistent performance and robust risk management.
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