In markets like these a good global stock-picker is worth their weight in gold and we think Schroder Global Equity (BD8RLF5) is a great option. This large-cap focused fund has been around for decades, it launched on 6 July 1988, and has been delivering strong returns returns to investors over a three-year, five-year, and 10-year period.

Year-to-date it has achieved a return of 9.02% in a tricky global macroeconomic environment. Over three years the annualised return is 12.4% and five years 10.6%. While the version of the fund available on most investment platforms has not been around as long, if we look over a 10-year period, the other main share class has achieved annualised returns of 12.4%. Ongoing charges are a fairly reasonable 0.6%.

Alex Tedder, who has been the lead manager of the fund since October 2014, must be doing something right to deliver this kind of performance.

The fund invests ‘at least 80% of its assets in equity or equity related securities of companies worldwide’. Tedder believes in a ‘positive growth gap’ strategy – identifying companies that will deliver future earnings growth above the level expected by the market, typically on a three-to-five-year horizon.

The fund’s equities are largely from the US, which represents more than 50% of the portfolio. Japan has a weighting of 5.44%, the UK 8.9%, and the Eurozone 11.2%.

Having such a diverse geographical split means a strong performance in one market can help compensate for a weak showing from another one.

Big US technology stocks largely dominate Tedder’s top five holdings which include Microsoft (MSFT:NASDAQ), Alphabet (GOOG:NASDAQ), Apple (AAPL:NASDAQ) and Amazon (AMZN:NASDAQ).

Tedder has benefited from the recovery in the technology sector so far in 2023. Over the last 12 months Microsoft’s shares have gained 25%, Alphabet’s shares 7% and Apple’s shares 25%.

New additions to the fund’s holding include semiconductor designer Nvidia (NVDA:NASDAQ) which has been boosted by its exposure to artificial intelligence infrastructure, its shares are up 108% in the past year.

Alongside these more well-known names, other big holdings include the owner of online travel booking platform Booking.com, Booking Holdings (BKNG:NASDAQ). Its shares are up 13% on a 12-month view.

The fund is also invested in France’s Schneider Electric (SU:EPA) which makes electrical kit ranging from light switches, sockets and electric vehicle charging points to building control systems and industrial automation software.

Tedder said in a recent fund update in April: ‘We maintain a balanced approach and remain focused on companies that have strong pricing power that can pass through rising costs.’

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