18
The world has gone global. Fund companies have
torn down most regional breakdowns and instead
have sector analysts who cross borders to get a
better handle on their industries. Talk with a fund
manager, and he or she will discuss the best com-
panies with little regard to locale.
This is why world-stock funds make so much sense.
The desire to keep things in tidy buckets is why they
get so little love. But that’s all the more opportunity
for those who don’t mind a little untidiness. Here are
six of the best.
Harding Loevner Global Equity
HLMGX
has just
$800
million in assets, though it is widely available in
No Transaction Fee supermarkets. The fund is run by
two lead managers, each of whom has three decades
of investing experience. Ferrill Roll and Peter Baughan
ply a focused blue-chip growth strategy that leads
them to well-known names like
Schlumberger
,
Nestle
, and
Nike
. Health care and tech account for
the largest sectors, but the fund owns at least some-
thing in most industries. The fund has really made its
name by holding up well in down markets like
2007
,
2008
, and
2011
. That owes to attention to debt, valua-
tions, and quality. The fund boasts the lowest down-
side capture (
75%
for
10
years) of the six world-stock
funds highlighted here.
American Funds Capital World Growth & Income
CWGIX
is a massive
$90
billion fund, but it looks
for some of the same things that Harding Loevner
does. It, too, seeks blue chips at decent valuations.
However, it has an income demand that leads it to
own more value stocks. The fund aims for pre-expense
income near that of the
MSCI
World Index. Its
2
.
16%
trailing
12
-month yield is pretty good in this low-yield
environment. With a big asset base, low costs, and
a deep team, it’s a good choice for people who want
low-maintenance investments that don’t
change much.
American Funds New Perspective
ANWPX
is
growthier than its staid cousin, as it doesn’t have
any dividend requirements. Thus, it tends to do a little
better in years like
2013
, but really both American
funds have diffuse portfolios and numerous managers.
Oakmark Global
OAKGX
is very much a blend fund.
Clyde McGregor and Rob Taylor run a tight portfolio
of just
43
stocks. They look for strong franchises
at low valuations. The most striking thing about their
portfolio, though, is how much is outside of the
eurozone. The United States, Japan, and Switzerland
dominate their portfolio with the likes of
Oracle
,
Toyota Motor
, and
Credit Suisse
. A focused port-
folio means some rough years, like the
12%
loss
in
2011
, but this fund’s
10
-year return is the best in
the group.
Dodge & Cox Global Stock
DODWX
marries the
firm’s best foreign and domestic ideas in an excellent
portfolio. It isn’t exactly the same as you would
get from owning
Dodge & Cox Stock
DODGX
and
Dodge & Cox International Stock
DODFX
, but
it’s quite close. Dodge
&
Cox simply does an excellent
job at patient value investing. And it does so at
the cheapest price among the six with a cost of
just
0
.
69%
.
Artisan Global Opportunities
ARTRX
has the stron-
gest growth bias of our six funds. It’s run by Artisan’s
growth team, which has managed
Artisan Mid Cap
ARTMX
since
1997
. This fund’s lead manager is
James Hamel, who also comanages Artisan Mid Cap
and
Artisan Small Cap
ARTSX
. Hamel has four
comanagers, and Andy Stephens is the most senior
investor of the group. Their approach is to look
for companies with accelerating growth and clean
balance sheets. Naturally, such attractive compa-
nies don’t come cheap, and this fund does come with
rather high valuations. Still, the fund has fared
quite well since it was launched in
2008
, and the
growth team has produced excellent results since
it was formed in
1997
.
œ
World-Stock Funds Deserve
More Attention
Tracking Morningstar Analyst Ratings
|
Russel Kinnel
What Are Morningstar
Analyst Ratings?
Our ratings are chosen for long-
term success. Analysts assess
a fund’s competitive advantages
by analyzing people, process,
parent, performance, and price.
They do rigorous analysis and
then submit their ratings to a
committee that vets their work
for thoroughness and consistency.
