Global funds to weather a ‘Brexit’ tantrum

9 min Read Published: 15 Apr 2016

This week I was asked an interesting question by an 80-20 Investor member. To paraphrase, the member wants to steer clear of UK equities until after the UK Referendum for fear of an equity market sell-off should the electorate vote to leave the EU. The member already held the global funds highlighted under the Best funds by Sector section at the time. However, they wanted to diversify their portfolio further into even more global equity funds, hence their request for additional suggestions.

Global funds aren't very global

The question raises another very interesting question of 'how global are global funds and how well diversified are they?' The answer to that question is 'not as global or as diversified as the sector name suggest or investors think they are'.

To prove this I analysed all the unit trusts within the Global sector (of which there are 187) to ascertain their geographical mix.

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