Last Updated on 27/01/2025 by Carl-Peter Lehmann
What are the Best Performing Global Equity Unit Trust Funds currently? With 2025 well underway, it’s the perfect time to reassess the performance of unit trusts in the global equity category. Have the rankings shifted since our last update? For South African investors, global equities have historically delivered superior returns over the past decade, driven by Rand depreciation and the explosive growth of primarily what is happening in the US, primarily the tech sector. While South African equities have shown signs of improvement more recently, global markets continue to deliver stronger returns, reinforcing the importance of offshore diversification. The ‘Global Equity General’ category, as classified by ASISA, remains one of the most effective ways for South African investors to gain international exposure. With that in mind, let’s explore the top-performing funds in this space and what they offer in the current market environment.
Why Offshore Equities for South African Investors?
While the JSE has its merits, it represents a small slice of the global economic pie. Offshore equities offer diversification not just in terms of geography but also sectors, giving you access to industries and technologies that may be under-represented locally like AI. Investing globally can act as a hedge against local economic uncertainties, political instability, and the devaluation of the Rand.
1. Ease of Investment
One of the advantages of Global Equity Unit Trusts is that they provide a straightforward gateway to international markets without the complexities of moving money offshore (although that remains our preferred strategy once your income level and/or wealth warrants it). Investing in these unit trusts is as simple as investing in any South African-based unit trust, eliminating the need for tax clearance from SARS (once you go above your R1 million annual discretionary allowance) or complicated tax reporting (even though these days it’s not that complicated and we help our clients with that).
2. Devaluation of the Rand
The Rand has historically been a volatile currency, subject to long-term depreciation. 10 years ago the USD/ZAR exchange rate was about 10.50. As of today, it hovers between 18.00-19.00. You do the maths and what that means to your global purchasing power, ability to travel and achieve or maintain real financial security? Investing in global equities offers a hedge against this currency risk. While your offshore investments may appreciate in value, you could also benefit from any weakening of the Rand, as your global assets would then be worth more in local currency terms.
3. Tax Basics - 'Direct' Offshore vs Feeder Fund
One of the reasons why we prefer direct offshore exposure whenever possible for our clients (aside from the security of having your money outside local borders) – is the impact of currency fluctuations on your investment returns and the consequent tax implications. Returns calculated in hard currency (e.g., USD when your money is actually offshore) – are not subject to exchange rate fluctuations. In other words, if your USD investment appreciates or depreciates by 10% – that is your gain or loss and makes the tax calculation simple. If investing offshore in ZAR – a 10% gain in USD terms could be boosted or dampened by Rand volatility. If the Rand say depreciates by 5% during the same time frame, your gain is suddenly 15%. If the Rand strengthens by 5%, your gain is now only 5%. Not the end of the world, but not ideal either.
Further Reading: Offshore Investing 101 and How to Go About It Properly
4. Unveiling Great Investment Opportunities
Global Equity unit trusts offer South African investors a ticket to participate in the growth stories of powerhouse companies like Nvidia, Microsoft, Eli Lilly, and Crowdstrike — entities not listed on the JSE. This allows you to tap into disruptive technologies and trends that are shaping the future, from clean energy and electric vehicles to AI, cybersecurity and cloud computing.
Consider Reading: Our Top Global Share and Stock Investment Ideas for 2025
How We Identify the ‘Best Performing’ Unit Trusts in the Global Equity Fund Category
Choosing the best performing unit trusts in the global equity category requires a nuanced approach. It’s not just about raw returns – risk, quality considerations, and asset manager capabilities all play a role. In this article, we focus on long-term annualized returns to assess which funds and asset managers have consistently delivered strong results, outperforming their peers.
That said, this is not an investment recommendation. Performance alone doesn’t determine whether a fund is the right fit for an investor’s portfolio, and there may be funds on this list we wouldn’t necessarily recommend clients commit capital to. Instead, this is a fun and insightful exercise meant to spark ideas and inspire further research.
Performance figures are sourced from Morningstar (as at 15/01/2025), with retail fund prices used.
A Few Key Considerations
Some of the most highly regarded foreign asset managers – including Fundsmith, T. Rowe Price, Sands Capital, and Lindsell Train – have only fairlyly recently introduced feeder funds for South African investors. As a result, their longer-term performance stats aren’t yet reflected in Morningstar’s historical rankings.
Many funds listed under local asset management brands are actually managed by foreign firms. For example, the Old Mutual Global Equity Fund is managed by Jupiter Asset Management.
Understanding the Impact of Currency Volatility on Offshore Fund Performance
When evaluating the performance of Rand-denominated offshore funds, it’s crucial to recognize the significant role currency volatility plays in shaping returns. Over the past year, we’ve seen how fluctuations in the Rand can influence the relative performance of local and global equity funds.
At one stage last year, South African equity funds were showing relative outperformance over their global peers, driven by a stronger Rand and a rally in local markets. However, in the final months of 2024, the Rand weakened considerably, reversing this trend and boosting the returns of offshore funds in Rand terms.
This highlights why investors should always assess global equity performance within the context of currency movements, as these fluctuations can have a material impact on returns. With that in mind, let’s take a look at the best-performing global equity unit trusts across different time frames.
Best Performing Unit Trusts - Global Equity Fund Performance over 3 Years in ZAR
There are 89 funds in the Global Equity Fund category with a 3-year track record, and the peer group average return stands at 9.74% per year.
The top-performing funds over this period are:
1. Sygnia FANG.AI Equity – 27.45% p.a.
2. Ranmore Global Value Equity FF – 20.2% p.a.
3. Mazi Global Equity FF – 16.59% p.a.
4. 1Invest S&P 500 Index FF – 16.2% p.a.
5. Old Mutual Global Equity – 15.97% p.a.
Key Takeaways
🔹 Tech Dominance: Sygnia FANG.AI Equity remains the standout performer, returning 27.45% per year, benefiting from the continued strength of tech and AI-driven stocks.
🔹 Value Also Works: Ranmore Global Value Equity FF delivered 20.2%, showing that value-oriented global equities have remained competitive in the current environment.
🔹 Broad Market Exposure Still Pays Off: The inclusion of 1Invest S&P 500 Index FF in the top performers highlights the effectiveness of passive exposure to U.S. equities.
🔹 Strong Outperformance vs Peers: All five funds significantly exceeded the peer group average of 9.74%, reinforcing the value of selecting strong global equity managers.
Best Performing Global Equity Unit Trust Funds Over 5 Years in ZAR
There are 64 funds in the Global Equity General category with a 5-year track record, and the peer group average return stands at 13.00% per year.
The top-performing funds over this period are:
1. Sygnia FANG.AI Equity – 29.23% p.a.
2. 1Invest S&P 500 Index FF – 19.65% p.a.
3. Anchor Global Equity FF – 18.38% p.a.
4. Old Mutual Global Equity – 17.99% p.a.
5. Sanlam Schroder Global Core Equity FF – 17.4% p.a.
Key Takeaways
🔹 Tech-Focused Funds Dominate: Sygnia FANG.AI Equity continues to be the standout performer, delivering 29.23% per year, significantly outpacing the rest of the field due to its concentrated exposure to major technology and AI stocks.
🔹 U.S. Market Strength Still Evident: 1Invest S&P 500 Index FF, which tracks the U.S. market, returned 19.65% p.a., reinforcing the dominance of large-cap U.S. equities in global portfolios.
🔹 Technology Exposure Drives Outperformance: Anchor Global Equity FF, Old Mutual Global Equity, and Sanlam Schroder Global Core Equity FF all have high exposure to the technology sector, which has been a key driver of their strong relative performance.
🔹 Outperformance vs Peers: All five funds comfortably exceeded the peer group average of 13.00%, emphasizing the impact of sector allocation and manager selection in long-term global equity investing.
Now Read: Henceforwards Role in Providing Global Investment Advisor Services
Top Global Equity Fund Performers over 10 Years - Rand Denominated
There are 30 funds in the Global Equity General category with a 10-year track record, and the peer group average return stands at 12.27% per year.
The top-performing funds over this period are:
1. Old Mutual Global Equity – 15.92% p.a.
2. BlueAlpha Global Equity – 15.21% p.a.
3. Stanlib Global Equity FF – 14.75% p.a.
4. Satrix MSCI World Index – 14.74% p.a.
5. PSG Wealth Global Creator FF – 14.71% p.a.
Key Takeaways
🔹 Consistent Long-Term Outperformance: Old Mutual Global Equity has been the strongest performer over the last decade, delivering 15.92% per year, well ahead of the peer group average of 12.27%.
🔹 Index Outperformance Signals a Challenge for Active Managers: The presence of the Satrix MSCI World Index among the top performers raises questions about the value-add of active management. If broad market exposure via an index can match or exceed most active funds, it reinforces why index and ETF strategies continue to attract growing investor interest.
🔹 More Active Managers Need to Outperform: For active management to remain compelling, we need to see more local global equity managers delivering consistent outperformance. Otherwise, investors may increasingly turn to low-cost index solutions for their offshore exposure.
🔹 Active vs Passive Performance: While some active managers like BlueAlpha and PSG Wealth Global Creator have kept pace, the broader active management space needs stronger, more consistent results to justify higher fees and attract investor capital.
🔹 Strong Relative Returns vs Peers: All five funds significantly outperformed the peer group average of 12.27%, but the challenge remains for active managers to prove their worth against passive strategies over the long term.
Consider Reading: Some of the Best Performing Hedge Funds in South Africa and How They Compare
How We Approach Global Investing for Clients
Investing in global equity unit trusts is as straightforward as making a local investment – whether through a lump sum or a monthly contribution, the process is typically hassle-free. However, simply picking funds based on past performance is a recipe for disaster. The best-performing global equity funds over the next decade will likely look very different from those topping the charts today.
That’s why our approach to global investing is strategic and tailored to each client’s unique financial plan. Where it makes sense and is possible, we invest directly offshore, giving clients access to a broader range of opportunities, lower-cost structures, and institutional-level investment options. However, we also recognize the value of Rand-based offshore strategies, which provide global diversification while maintaining liquidity and simplicity within local investment structures.
Another key element of our strategy is the balance between active and passive investing. While passive strategies – such as index funds and ETFs – offer cost efficiency and broad market exposure, active management can add value through tactical asset allocation, sector tilts, and downside risk management. The best results often come from blending both approaches, ensuring a cost-effective, globally diversified portfolio tailored to long-term investor outcomes.
Ultimately, understanding your lifestyle, financial needs, and long-term goals is far more important than chasing past performance. A well-structured portfolio should be built with purpose and discipline, ensuring it remains resilient across different market cycles and currency fluctuations.
Now Read: Our Guide on Offshore Investing and Some of the Best Direct Offshore Funds Available Currently
Closing Thoughts on the Best PerformingUnit Trusts in the Global Equity Fund Space
For South African investors, global equity unit trusts offer far more than just diversification. They act as a hedge against local economic and currency risks while providing access to global industries, innovations, and opportunities that are difficult to tap into through domestic markets alone. Investing globally has never been easier, but with an ever-expanding range of funds and strategies, navigating this space requires careful consideration.
At Henceforward, we take a deliberate, structured approach to global investing – helping clients blend active and passive strategies, balance direct offshore and Rand-based offshore solutions, and most importantly, align their portfolios with their long-term goals, values, and risk tolerance. The right investment strategy is never just about chasing past performance – it’s about building a portfolio designed to stand the test of time.
Disclaimer: This article is for information purposes only and should not be construed as financial advice. Never invest in a fund solely based on past performance. Always consider your personal financial situation and seek professional advice before making investment decisions.
Carl-Peter Lehmann
Carl-Peter is a Certified Financial Planner (CFP®) and Director at Henceforward, with over 20 years of experience in wealth management and offshore investing. Having worked in global financial centers, he specializes in helping South African investors navigate international markets and build globally diversified portfolios.
