Rated Funds in the global growth asset group strive to seek out companies around the globe that are delivering high and accelerating earnings growth. They do this in a variety of ways: some look at the macroeconomic environment and prioritise companies that are operating in regions with accelerating economies.
Others may take a thematic approach, seeking out emerging industries such as technology or alternative energy, or stocks that benefit from global trends such as climate change. Others may look for high-quality companies that can grow their earnings in all types of market environment.
In general, funds of this type will tend to perform better in buoyant markets, but may fall more than the market when sentiment is weak, certainly when compared to an equity income strategy. Some funds will be more valuation-sensitive than others, but many funds in the sector opt for a 'growth at a reasonable price' approach, incorporating some valuation discipline into their selection of stocks.
Our 22 fund choices start with 11 core funds that we would expect to be resilient in tougher market conditions, and include a sustainable option. Then follow 11 more adventurous selections that arguably have higher growth potential but with added risks.