Top 20 Funds For Spreading Global Investment Risk

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Neil Woodford’s demise as a celebrated fund manager has prompted many investors to diversify – but the problem is where to look for suitable investments.

If you are making a single investment to spread across lots of different stocks, sectors and countries, then the Association of Investment Companies (AIC) has put together a list of the top 20 funds that will do the job.

Investing like this lets you capture growth and income from a range of sources and spreads the risk.

Annabel Brodie-Smith, the AIC communications director, said: “With the news bringing more reasons to worry than to celebrate, many investors might take comfort from knowing their investments are spread across a wide range of different countries.

“The ability to spread your investment across a variety of companies, countries and sectors is one of the biggest benefits of collective investments, such as investment companies. Different countries will have varying economic and political environments as well as different strengths and weaknesses, so investing in a good spread of regions can make sense.

“It’s not surprising to see big, global investment companies top the list, investing in as many as 37 different countries. However, it’s interesting that some investment companies with strong sector specialisms, such as environmental or financials, are so diversified by country.”

Top 20 funds for spreading investment risk across countries

RankNameAIC sectorLargest single country exposureNo of countries invested in
1F&CGlobal52% – USA37
2WitanGlobal35% – UK36
3Genesis Emerging MarketsGlobal Emerging Markets25% – China32
4Aberdeen Emerging MarketsGlobal Emerging Markets24% – China26
5Utilico Emerging MarketsGlobal Emerging Markets26% – Brazil26
6Alliance TrustGlobal47% – USA26
7Murray InternationalGlobal Equity Income14% – USA25
8Aberdeen Frontier MarketsGlobal Emerging Markets26% – Vietnam24
9BankersGlobal32% – USA24
10BlackRock FrontiersGlobal Emerging Markets11% – Indonesia23
11Polar Capital Global FinancialsFinancials40% – USA23
12CaledoniaFlexible Investment40% – UK23
13Jupiter Emerging & Frontier IncomeGlobal Emerging Markets14% – Cayman Islands22
14JPMorgan Global Emerging Markets IncomeGlobal Emerging Markets21% – China20
15Templeton Emerging MarketsGlobal Emerging Markets24% – China20
16Henderson International IncomeGlobal Equity Income29% – USA20
17Jupiter GreenEnvironmental30% – USA20
18Impax Environmental MarketsEnvironmental43% – USA20
19HeraldGlobal Smaller Companies51% – UK19
20Aberdeen Standard Asia FocusAsia Pacific Smaller Companies14% – Thailand18

Source: AIC