- In this report, we spotlight the best-performing UK and global equity funds.
- We compare their performance to see which has delivered better results across the 6-month, 1-year, 3-year, and 5-year periods.
- Out of 519 European equity funds analysed, only 88 achieved top 4- or 5-star ratings, while 63.4% were underperformers, receiving a 1- or 2-star rating.
- Among the 275 UK equity funds analysed, only 56 received top-tier 4- or 5-star ratings, while around 59% were rated as poor performers, receiving a 1- or 2-star rating over the same timeframes.
- The IA Global sector has delivered the highest average returns over the past five years. However, in the past six months, the UK sector has outperformed the global sector.
UK equity funds have been overlooked by investors for much of the past decade. According to the Investment Association, they recorded the lowest net retail sales of any major sector in eight of the past ten years, as portfolios shifted towards global strategies and overseas growth markets. This prolonged outflow reflects a sustained preference among investors for global funds, which are seen to offer better growth opportunities through wider diversification.
However, recent performance data challenges this assumption. Over the past six months, UK equity funds have emerged as some of the strongest performers across all equity sectors - prompting renewed scrutiny of their role within diversified portfolios.
In this latest report, we analyse the performance of 275 UK equity funds and 519 global equity funds over 6 month, 1 year, 3 year, and 5 year periods. We identify which funds have delivered the most consistent outperformance and assess the relative strength of each sector across different market conditions. Our findings reveal that while global equity funds have led over the long term, several UK focused strategies have delivered exceptional short- and medium-term results - offering valuable insight into how performance trends are evolving.
By highlighting the top-performing funds in each sector, this analysis provides clarity on where consistent returns have been achieved and reinforces why performance should always be assessed in context, not isolation.
UK & Global Equity Funds Performance Summary
As part of this report, we analysed the performance of 519 global equity funds and 275 UK equity funds, reviewing their returns and sector rankings over the past 6 months, 1 year, 3 years, and 5 years. Each fund was assigned a performance rating based on how it compared with others in its sector across these key timeframes.
Among global equity funds, only 88 received a 4 or 5 star rating, reflecting consistent outperformance relative to peers. In comparison, 329 funds, representing more than 63% of the sector, were rated 1 or 2 stars due to persistently below average returns.
UK equity funds showed a slightly stronger distribution. Of the 275 funds analysed, 56 achieved a 4 or 5 star rating, while 162, almost 59%, were rated 1 or 2 stars for underperformance.
Both sectors revealed a wide gap between the best and worst performers. While UK equity funds had a marginally higher proportion of consistently strong results, the difference was modest, highlighting the importance of careful fund selection regardless of region
Overall, while both sectors showed a clear divide between leading and lagging funds, the UK equity sector had a marginally higher proportion of funds delivering above-average results. However, the difference remains small, underlining the importance of rigorous fund selection, whether investing domestically or globally.
*Source: hub.yodelar.com
The table above shows the annual performance for each sector, highlighting the variation in average returns and the level of volatility experienced across different market conditions.
5 Top Performing Global Equity Funds
Global equity funds invest in companies from around the world, giving investors access to a wider mix of markets, industries, and currencies than UK-focused funds. This global approach can help spread risk and capture more growth opportunities. But not all funds perform to the same standard - some have consistently delivered better results than others.
In this section, we highlight five global equity funds that have stood out from the rest. Each has delivered strong and consistent returns over the past 6 months, 1 year, 3 years, and 5 years, making them some of the best performers in their sector.
Each of these funds has been awarded a top 5-star rating based on its performance relative to sector peers.
1. M&G Global Strategic Value Fund
The M&G Global Strategic Value Fund invests in large companies from across the globe, focusing on those it believes are undervalued relative to their long-term potential. Its approach aims to deliver a mix of growth and income over time by identifying overlooked opportunities in established markets.
With approximately £448 million under management, the fund has produced strong results across all periods analysed. Over the past six months, it returned 5.97%, outperforming the sector average of minus 0.97%. Its one-year return of 13.14% also exceeded the sector average of 3.71%. Over three years, it achieved 44.38% compared to 29.93%, and over five years, it delivered 95.83%, placing it 18th out of 393 funds in its sector.
The fund maintains broad geographic exposure, with significant investments in the US, UK, and Japan. Well-known companies such as Alphabet, Tesco, Oracle, and Imperial Brands have played a role in its past outperformance.
Although recent results have been competitive, performance alone should not be the sole consideration. Investors should assess how the fund’s value-driven approach and regional mix align with their broader investment strategy.
2. Orbis Global Equity Standard Fund
The Orbis Global Equity Standard Fund invests in a wide range of companies around the world, with the aim of delivering stronger long-term returns than the broader global stock market. It currently manages around £320 million and invests across different sectors and regions, including both developed and emerging markets.
Over recent years, the fund has produced strong results. In the past six months, it returned 11.65%, placing it 11th out of 519 funds in its sector and well ahead of the average return of minus 0.97%. Its one-year return was 16.56%, compared with the sector average of 3.71%. Over three years, it gained 56.90% against a sector average of 29.93%, and over five years, it returned 88.15%, placing it comfortably in the top quarter of its peer group.
The fund follows a high-conviction approach, selecting a focused group of companies it believes are undervalued or overlooked by the wider market. Its portfolio is diversified across industries, with a larger focus on financials, industrials, and healthcare. Companies such as Nintendo, Corpay, Elevance Health, and QXO have been among its strongest contributors.
While past performance has been strong, the fund’s differentiated approach and focused portfolio make it more suitable for investors comfortable with a strategy that may at times deviate from broader market trends.
3. Ranmore Global Equity Fund
The Ranmore Global Equity Fund takes a global value approach, investing in companies it believes are trading below their true worth. Unlike many traditional strategies, it combines value investing with elements of momentum and technical analysis to support its decision-making. The fund targets businesses with strong financial foundations, consistent cash flows, and reliable long-term profitability, while avoiding firms with excessive debt or speculative valuations.
With around £720 million in assets, the fund invests across a broad range of global companies, including both large and mid-sized firms. Its strategy has delivered strong and consistent results across different market cycles. Over the past six months, it returned 14.94%, ranking 6th out of 519 funds in the IA Global sector. Its one-year return of 24.55% placed it 7th out of 514, well above the sector average of 3.71%. Over three years, it returned 86.41%, and over five years, it achieved a cumulative return of 142.11%, ranking 2nd out of 393 funds.
Performance has been supported by exposure to sectors such as consumer goods, financials, healthcare, and communication services. The fund’s ability to shift quickly in response to changing market conditions was particularly evident during the value-led market rebound in 2022.
This flexibility, combined with its focus on undervalued and financially resilient companies, has helped the fund stand out from its peers. While no fund can consistently outperform in every environment, Ranmore’s results show how a distinct investment process can lead to competitive long-term outcomes.
4. Thornbridge Global Opportunities Fund
The Thornbridge Global Opportunities Fund invests primarily in global shares, but also has the flexibility to hold bonds, cash, and other assets when needed to help manage risk. This multi-asset approach allows the fund to adjust its positioning in response to shifting market conditions.
With around £198 million under management, the fund seeks out companies with strong growth potential, reliable earnings, and established positions in their industries. Its portfolio spans different sizes, sectors, and regions, helping to reduce dependence on any one part of the market.
Over the past six months, the fund returned 3.62%, outperforming the sector average of minus 0.97%. Its one-year return of 8.31% also exceeded the sector average of 3.71%. Over three years, it delivered a return of 61.39%, and across five years, it achieved 119.17%, placing it 9th out of 393 funds in the IA Global sector.
Recent performance has been supported by holdings in companies such as Microsoft, Broadcom, Quanta Services, and Arca Continental — businesses with consistent demand and strong earnings records. The fund maintains a global perspective, with significant exposure to the US, along with positions in the UK, Netherlands, and Japan.
5. Ninety One Global Special Situations Fund
The Ninety One Global Special Situations Fund invests in companies around the world with the aim of delivering long-term growth and income. It focuses on businesses that show strong underlying financial health and the potential to recover or grow meaningfully over time. At least two-thirds of its portfolio is held in shares, selected through detailed, company-specific research.
With £106.61 million in assets, the fund has delivered competitive performance across multiple timeframes. Over the past six months, it returned 10.47%, ranking 15th out of 519 funds, and well above the sector average of minus 0.97%. Its one-year return of 7.28% also outpaced the sector’s 3.71% average. Over three years, it returned 57.13%, and its five-year return of 117.99% placed it 10th out of 393 funds.
The portfolio is relatively concentrated, with key positions in companies such as Rolls-Royce, Meta Platforms, McKesson, Allfunds, and AerCap. These holdings have supported returns, particularly during the post-pandemic recovery in areas like industrials and financials.
The fund’s flexible, benchmark-unconstrained approach allows it to back select opportunities without being tied to index weights. This has enabled it to respond to changing conditions and focus on companies it believes offer long-term value.
Its ability to combine focused stock selection with global diversification has contributed to its strong results and helped it maintain a competitive position among global equity funds over recent years.
5 Top Performing UK Equity Funds
From our analysis of 275 UK equity funds, 56 received a top 4 or 5-star rating. Among these, the funds below achieved a top 5-star Yodelar rating. These funds have shown consistent outperformance across multiple timeframes.
Each ranks among the top performers in the IA UK All Companies sector and the UK Equity Income sector.
The table above lists 5 of the top-performing UK equity funds over the past 6 months and 1, 3 & 5 years.
1. Artemis SmartGARP UK Equity fund
The Artemis SmartGARP UK Equity Fund sits within the IA UK All Companies sector and has built a strong performance record over several years. It uses a proprietary investment model known as “SmartGARP,” which blends value and growth indicators to identify UK-listed companies that are both attractively priced and showing signs of improving business conditions.
This model-driven approach aims to remove emotion from stock selection. Instead, it applies a consistent set of rules to screen the market for shares that offer long-term potential based on financial strength, earnings momentum, and valuation.
With £877.82 million in assets, the fund has produced standout returns across all measured periods. Over the past six months, it delivered 17.26%, ranking 3rd out of 212 funds. Its one-year return of 32.43% placed it at the top of the sector, compared with an average of 8.62%. Over three years, it returned 64.36%, and over five years it achieved 143.48%, ranking 1st out of 196 funds and nearly tripling the peer group average of 52.37%.
2. Schroder Income Fund
The Schroder Income Fund invests primarily in UK-listed companies and aims to deliver a combination of income and long-term growth. It follows a value-oriented approach, focusing on businesses with reliable dividend payments and solid financial health. The portfolio is concentrated, typically holding around 46 companies, and manages approximately £1.29 billion in assets.
Performance has been consistently strong across all key periods within the IA UK Equity Income sector. Over the past six months, the fund returned 13.19%, ahead of the sector average of 9.27%. Its one-year return of 20.82% placed it 2nd out of 67 funds, almost double the sector average of 10.84%. Over three years, it delivered 43.93%, and its five-year return of 112.04% ranked it 1st out of 65 funds, well above the peer group average of 65.52%.
The fund’s success has been supported by exposure to areas of the market that have recovered well in recent years, including financials, consumer goods, and retail. Its disciplined strategy and ability to identify stable, income-generating companies have helped it deliver consistent returns through a range of market conditions.
While past performance cannot guarantee future results, the fund’s long-term track record highlights the potential value of a steady, income-focused approach within a UK equity portfolio.
3. Invesco UK Opportunities (UK) Fund
The Invesco UK Opportunities Fund focuses on UK-based companies with the goal of delivering long-term capital growth. At least 80% of the portfolio is invested in businesses that are either incorporated in the UK or generate most of their revenue here. The fund also has the flexibility to invest in overseas companies and other assets where appropriate, allowing it to adapt its positioning in response to changing market conditions.
The fund applies a flexible, actively managed approach without strict benchmarks or sector constraints. This has supported strong results across multiple timeframes. Over the past six months, it returned 11.73%, ahead of the sector average of 7.49%. Its one-year return of 13.28% placed it in the top 15% of funds in its sector. Over three years, it delivered 38.26% compared with a sector average of 27.01%, and over five years, it returned 111.58%, ranking 5th out of 196 funds.
Recent returns have been supported by exposure to large UK companies that have benefited from improved investor sentiment following years of political and economic uncertainty. Holdings in Shell, AstraZeneca, Lloyds Banking Group, Prudential, and Unilever have contributed through a combination of strong earnings and market resilience.
With over £1.7 billion under management, the fund’s ability to combine flexibility with a clear focus on UK opportunities has helped it stand out in what has often been a challenging domestic market.
4. Dimensional UK Value Fund
The Dimensional UK Value Fund takes a rules-based approach to investing, focusing on UK-listed companies that are considered undervalued by the market. Rather than picking individual stocks based on forecasts or opinions, the fund uses data-driven criteria to target companies with characteristics linked to higher long-term returns - such as low valuations, smaller size, and strong profitability.
This structured strategy also accounts for factors like share liquidity and market momentum, aiming to build a balanced and efficient portfolio. With £292.8 million in assets, the fund is designed to deliver broad exposure to the UK value segment, while keeping trading costs and turnover relatively low.
Its performance has been strong across all periods reviewed. Over six months, the fund returned 13.48%, ranking 11th out of 212 funds. Its one-year return of 17.60% placed it 10th in a field of 208. Over three years, it delivered 46.30%, and its five-year return of 109.28% placed it 6th out of 196 funds - more than double the sector average of 52.37%.
The fund’s consistent performance is the result of its data-driven strategy, which avoids trying to predict the market and instead focuses on long-term factors that have been shown to drive returns. While it doesn’t involve hands-on stock picking, it offers a low-cost way to invest in UK companies that appear undervalued.
5. JOHCM UK Dynamic Fund
The JOHCM UK Dynamic Fund aims to deliver long-term growth by investing in a focused selection of UK-listed companies. It takes an active and flexible approach, backing businesses the managers believe are attractively priced and well positioned to grow. The fund invests across the market, from large to smaller companies, with a strong focus on value and capital protection.
Its portfolio is relatively concentrated, allowing the team to focus on a smaller number of high-conviction ideas. Sector and stock exposure can change depending on where the managers see the best opportunities. The fund also looks for companies going through meaningful change, such as management shifts or strategic restructuring, that could unlock future growth.
With £387 million in assets, the fund has delivered solid performance over multiple timeframes. Over the past six months, it returned 12.35%, placing 15th out of 212 funds in its sector. Its one-year return of 13.84% was also ahead of the sector average of 8.62%. Over three years, it returned 43.89%, and over five years, it achieved 101.15%, ranking 8th out of 196 funds and nearly doubling the sector average of 52.37%.
The Pitfalls of Chasing Performance: Why Context Matters in Fund Selection
Past performance is a valuable tool when used correctly. It can highlight funds and managers that have delivered consistent results across varying market conditions. But issues arise when investors rely too heavily on recent returns without understanding the drivers behind them.
Many portfolios are built around top-performing funds over the last one, three, or 5 years - often without recognising that these returns may have been driven by temporary macroeconomic trends rather than genuine manager skill. This can lead to portfolios built on short-term momentum, not long-term quality.
For instance, funds with heavy exposure to US technology stocks performed strongly during the low-interest, growth-led cycle of the 2010s. While some managers added value, much of the return was a result of favourable conditions that may not continue.
Performance should be assessed in context. Without considering how and why returns were achieved, investors risk backing trends rather than identifying enduring quality.
Summary
UK and global equity funds each bring their own advantages to an investment portfolio. Global funds open the door to international markets and industries, allowing investors to benefit from growth trends worldwide. Much of their strong performance in recent years has been driven by gains in major US technology companies, which continue to dominate global indices.
In contrast, UK equity funds invest in established businesses within the domestic market. Recently, they have shown signs of recovery, supported by improved economic forecasts, resilient employment figures, and stabilising inflation. Factors such as steady consumer spending and reduced recession risks have boosted confidence in UK shares, enabling certain funds to deliver competitive returns.
Our analysis shows that within both global and UK sectors, there are standout performers as well as funds that have struggled. While global funds generally deliver stronger average returns, some UK funds still outperform thanks to skilled management.
Investors should weigh the diversification advantages of global funds against the stable income potential of UK funds. Fund choices should be based on consistent strategy and manager quality, not just past performance.
Markets are always changing. Choosing the right funds is just the first step. Long-term success depends on understanding how each fund fits your goals and maintaining a well-diversified portfolio.
Many investors hold underperforming funds without realising how this affects future returns. A professional review can help you identify strengths, address weaknesses, and align your investments with your plans. Through our partnership with MKC Wealth, you can get a personalised review from experienced financial planners to see if your portfolio is on track. If you want a clear view of your investments and whether better options are available, request a free, no-obligation review with our advisers today.
