Here are three great global equity strategies run by Canadian managers that each earn Morningstar Medalist Ratings of Gold, Silver, or Bronze. Their People and Process ratings of Above Average or High have a lot to do with their medals.
NBI Global Equity Fund
NBI Global Equity Fund is sub-advised by PineStone Asset Management of Montréal. Portfolio manager Nadim Rizk and his team of experienced research analysts want quality companies with the best combination of growth and valuation. They will wait patiently for the right buying opportunities to build a concentrated portfolio of 25-35 stocks. Rizk and team try to avoid companies with wide ranges of potential outcomes, but their growth bias can hurt when pricier stocks come under pressure.
The long-term-focused team has posted good results. Over ten years through June 2024, the F share class’s annualized returns rank in the Canada Funds Global Equity Morningstar category’s top decile and have beaten the Morningstar Global Markets Index.
Mawer Global Equity Fund
Mawer Global Equity is still a great option for investors. The Calgary-based firm employs over 30 investment professionals who split research by geography. This global fund can take full advantage of investment ideas from all their teams. Mawer has a first-rate research database that allows portfolio managers Christian Deckart and Manar Hassan-Agha to sift through notes and opinions on more than 10,000 companies to build a portfolio of 50-80 stocks.
The duo’s disciplined process looks for a good balance between quality and return potential, and while the fund can lag the index over the short term, its focus pays off in times of market turmoil, like 2018 and 2022. The fund’s below average risk sets it apart, but A-class returns also rank it in the top quartile of peers over ten years through June 2024. The fund is also available to investors through Manulife Global Equity Fund, which is sub-advised by Mawer.
Fidelity Global Innovators Class
Portfolio manager Mark Schmehl has been running Canadian funds for Fidelity for more than a decade and Fidelity Global Innovators since 2017.
Schmehl has a very active approach that looks for already-dominant and innovative companies going through positive changes, as well as weaker companies that are starting to improve. Despite his long-term affinity for technology stocks, he’s shown flexibility. His move out of tech into energy stocks in 2022 proved savvy, as did his shift back into technology in 2023. Schmehl makes his own quick investment decisions, but also gets ideas from Fidelity’s equity analyst team.
Schmehl takes a lot more risk than the average manager and tends to keep most of the portfolio in US stocks. So the NASDAQ Composite Index, the fund’s prospectus benchmark, may be a better yardstick than the Morningstar Global Markets Index. The fund doesn’t provide conventional regional or sector exposure.
