The £162m portfolio is the best performer of the elite group over the last decade, with returns of 141.21 per cent.
Performance of funds vs sector over 10-yrs
| Name |
1yr (%) |
3yr (%) |
5yr (%) |
10yr (%) |
| Rathbone Global Opportunities |
4.22 |
75.88 |
29.46 |
141.21 |
| CF Adam Worldwide |
4.36 |
69.28 |
34.86 |
116.27 |
| Baillie Giff Phoenix Global Growth |
11.96 |
83.16 |
49.94 |
104.52 |
| Fidelity Global Consumer Industries |
7.13 |
61.97 |
53.7 |
96.47 |
| Aberdeen World Equity |
6.75 |
59.81 |
35.68 |
81.35 |
| IMA Global |
-0.27 |
48.81 |
13.15 |
47.55 |
Source: FE Analytics
A recent FE Trustnet article highlighted the general weak performance of IMA Global, even though it has been one of the most popular sectors with UK investors recently.
The strong performance of Rathbone Global Opportunities over five and 10 years comes despite a weak 2008, which saw Thomson lose 39.39 per cent – more than twice as much as his FTSE World benchmark.
The manager used this dire performance during the financial crisis as a valuable lesson and since then has markedly increased his exposure to more defensive, weatherproof stocks. While the fund still significantly outperformed its peer group and benchmark during the QE-fuelled rally of 2009 and 2010, the high exposure to less economically sensitive names saw it defend itself well against last year's slump.
Year-on-year performance of fund vs sector and index
| Name |
2011 (%) |
2010 (%) |
2009 (%) |
2008 (%) |
2007 (%) |
2006 (%) | 2005 (%) | 2004 (%) |
| FTSE World Index |
-5.79 |
16.28 |
19.64 |
-18.18 |
9.45 |
6.54 |
24.49 |
8.22 |
| IMA Global |
-9.27 |
15.78 |
22.95 |
-24.32 |
8.78 |
7.79 |
24.76 |
7.7 |
| Rathbone - Global Opportunities |
-4.67 |
26.59 |
37.97 |
-39.39 |
30.44 |
9.99 |
35.24 |
21.4 |
Source: FE Analytics
Since Thomson took over in November 2003, the fund has outperformed both its sector and benchmark in seven out of a possible eight years. Moreover, in six of these seven years the portfolio was a top-quartile performer.
The manager believes the markets will stay volatile and unpredictable for the foreseeable future, so maintains a sizeable portion of the fund in companies that can generate healthy profits regardless of the macro condition.
He points to Swedish Match, which makes flavoured cigars and a chewing tobacco alternative called Snus, as a stock that typifies his all-weather approach.
However, he avoids retail banks, peripheral Europe and mining, which he believes are too risky in the current climate.
The success of the fund is beginning to be recognised by the wider market and its size has more than doubled in the past 12 months to £162m. Moreover, according to the latest sales figures from Chelsea Financial Services, it was the sixth most popular fund with Junior ISA investors this year.
Rathbones Global Opportunities has a minimum investment of £1,000 and a total expense ratio (TER) of 1.57 per cent. It is one of the few Global funds that has five crowns under the FE Crown Fund Ratings system.