Global equity investment trusts give access to companies around the world through one listed investment. They pool shareholder capital and use professional managers to invest across different countries, sectors and currencies.
These trusts can be bought through investment platforms or on the London Stock Exchange, making them straightforward to access. Their main role is to provide exposure to global capital growth and, in some cases, dividends from international companies. The structure can be useful when market opportunities are spread across regions rather than concentrated in one economy.
Global equity income funds are more focused on dividends. They invest mainly in companies worldwide that pay regular income, while also aiming for long-term capital growth. These funds usually target established businesses with stable earnings, strong cash generation and sustainable payout policies.
This approach can help create a broader income stream than relying only on domestic dividend shares. Different regions and sectors can perform differently through the market cycle, so global equity income funds may help spread income risk. They are commonly offered by large institutional and retail fund managers, giving access to a wide range of dividend-paying companies in one portfolio.
Global defensive equities focus on companies whose earnings are less tied to the economic cycle. These are often found in sectors such as utilities, consumer staples and healthcare. Demand for their products and services tends to remain steadier during periods of slower growth, which can support more consistent revenues.
Defensive equities are used to reduce portfolio volatility and limit the impact of market downturns. They may also provide dividend income, although share prices can still fall and dividends are not guaranteed. Their value lies in the potential to add stability when markets become more uncertain.
Multi-asset investments take diversification further by combining different asset classes in one portfolio. These can include equities, bonds, property-related assets and cash. The aim is to balance risk and return by avoiding overdependence on any single market or asset type.
Professional managers adjust the mix of assets as market conditions change. When growth assets look attractive, a portfolio may hold more equities. When risks rise, it may increase exposure to bonds or cash. This active allocation can help smooth returns across different phases of the market.
Multi-asset portfolios are often used by those who want a managed investment solution without having to select and rebalance separate funds themselves. They can be designed for income, capital growth or a more defensive outcome, depending on the strategy.
Global Opportunities Trust plc LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.
