Top Global Growth Equities Funds Over 3 Years

Introduction

In our previous article, “The Alpha of Active Funds: Myth or Reality?”, we demonstrated how certain active funds can outperform passive funds with robust alpha.

Today, we go further by analyzing a selection of active Global Growth Equities funds available to French investors. Dive into this exploration of the true gems of active management to understand what makes them unique in terms of strategy, performance, and risk management.

EnvestBoard, with its database of over 200,000 funds covering 97% of European offerings and 2,500 life insurance contracts, PER and PEA, enables the identification of these exceptional funds. Available through various investment vehicles, such as life insurance contracts and PER, these funds stand out through their innovative management strategies and the recognized expertise of their managers. Discover their unique approaches and the professionals who lead them.

Performance over 3 years (from 29/11/2021 to 27/11/2024)

Funds in Detail

1. DWS Invest II Global Equity High Conviction Fund

Investment strategy: The fund adopts an active approach with a concentration on a limited number of high-conviction global equities. These companies are selected based on their potential for sustainable outperformance, with particular attention paid to strong fundamentals and distinct competitive advantages. The strategy favors innovative sectors, notably technology and healthcare.
Key features: Fund management relies on rigorous stock selection, with a concentrated portfolio to maximize return potential. This strategy captures opportunities in global markets while managing risks.
ESG: Classified SFDR Article 8, the fund integrates ESG criteria in its investment selection, although this is not an exclusive objective. Management highlights sustainable practices of selected companies, reinforcing alignment with responsible investor expectations.
Management advantages: Excellent risk management through contained volatility and active management that adapts to macroeconomic developments. Focus on high-conviction companies and global growth opportunities.
3-year quantitative analysis: This fund displays the lowest volatility in the selection (12.52%), demonstrating prudent management even amid market fluctuations. With a maximum drawdown limited to 12.70%, the fund demonstrates excellent capital protection capability. The Sharpe Ratio of 0.9 shows that the fund delivers excellent risk-adjusted returns. Its moderate correlation with the Global Growth Equities category (0.7152) reflects a certain capacity for alpha generation versus its peers.
EnvestBoard link: Access the fund
Management company: DWS Group
Managers: Juan barriobero
Sales representative: Olivier Dubost

2. Natixis Loomis Sayles Global Growth Equity Fund

Investment strategy: The fund focuses on global companies capable of generating superior long-term growth through dynamic, discretionary management. The managers apply in-depth research to identify companies with strong earnings growth potential, stable cash flows, and high innovation capacity. The emphasis is on sectors such as technology, healthcare, and consumer goods.
Key features: A unique approach combining detailed fundamental analysis with sectoral and geographical diversification. The fund favors leading companies in their field while seeking opportunities in rapidly expanding sectors.
ESG: The fund falls under SFDR Article 8 category, integrating ESG criteria in the selection process. Although ESG is not the primary driver, the analysis of responsible practices is a factor considered in investment decisions.
Management advantages: Robust diversification to limit risks, rigorous stock selection, and concentration on global growth leaders.
3-year quantitative analysis: With a volatility of 21.17%, the fund presents one of the highest risk exposures among the selection. Its maximum drawdown of 26.10% reflects greater sensitivity to market fluctuations. However, its high correlation with the Global Growth Equities category (0.8068) illustrates notable exposure to the growth factor, which may suit investors seeking specific exposure to this factor.
EnvestBoard link: Access the fund
Management company: Natixis Investment Managers
Managers: Aziz Hamzaogullari.
Sales representative: Stéphane VONTHRON

3.DWS Global Growth LD

Investment strategy: The fund favors companies offering strong growth potential, with a portfolio focused on leaders in innovative sectors such as technology and healthcare. The approach is diversified both geographically and sectorially, capturing opportunities in developed and emerging markets.
Key features: Active management combined with strong exposure to long-term structural themes such as technological innovation and healthcare. The fund adapts to economic cycles through dynamic allocation.
ESG: Classified SFDR Article 8, the fund implements ESG criteria in investment selection. While these criteria are not exclusive, they reinforce commitment to sustainable management.
Management advantages: Particular attention to structural themes, combined with active management of macroeconomic and geopolitical risks.
3-year quantitative analysis: Displaying moderate volatility of 18.44%, the fund maintains a good balance between performance and stability. Its maximum drawdown of 24.00% and Sharpe Ratio of 0.4 are in line with category averages, while a relatively low correlation (0.659) suggests a less systematically growth-oriented approach over the analyzed period.
EnvestBoard link: Access the fund
Management company: DWS Group
Sales representative: Olivier Dubost

4. Mirova Women Leaders and Diversity Equity Fund

Investment strategy: This fund is designed to promote companies that actively integrate gender equality and diversity practices in their governance and operations. The strategy targets companies with strong female leadership or exemplary inclusion practices.
Key features: A unique approach oriented toward social impact, combined with a selection of female-led companies in their respective sectors. The emphasis is on high-performing and responsible companies.
ESG: The fund is classified SFDR Article 9 and stands out for its assertive ESG approach. Equality and diversity are at the core of its investment process.
Management advantages: Committed and responsible management, aligned with the expectations of investors concerned about social and environmental issues.
3-year quantitative analysis: With the lowest volatility among the analyzed funds (14.34%) and a maximum drawdown of 19.70%, this fund demonstrates strong resilience against market risks. Its Sharpe Ratio of 0.5, higher than its peer average, reflects management focused on delivering risk-adjusted returns. Its high correlation with the category (0.852) underscores consistent exposure to the growth factor, while offering a unique theme in favor of gender diversity.
EnvestBoard link: Access the fund
Management company: Mirova
Managers: Soliane Varlet, Xavier Combet
Sales representative: Stéphane VONTHRON

5. Echiquier World Equity Growth

Investment strategy: The fund targets large international capitalizations, leaders in their sectors, with strong exposure to global growth. It applies a stock-picking strategy based on rigorous fundamental analysis.
Key features: Discretionary management that favors stocks with high valuation potential, with an integrated sustainability approach. The fund combines ESG principles with in-depth research on global trends.
ESG: Classified SFDR Article 8, the fund integrates ESG criteria in its selection process and favors companies that are responsible from an environmental, social, and governance perspective.
Management advantages: Active management offering strong expertise in global markets, with an emphasis on performance and sustainability.
3-year quantitative analysis: The fund presents a volatility of 16.57%. Management aims to capture global market opportunities while remaining more prudent than its peer average. With a maximum drawdown of 18.10%, it demonstrates a notable ability to limit declines in difficult environments. Its Sharpe Ratio of 0.4 is in line with the category average, while its correlation of 0.7887 with the Global Growth Equities category indicates significant exposure to the growth factor, while offering differentiated perspectives through rigorous stock selection.
EnvestBoard link: Access the fund
Management company: La Financiere de l’Echiquier
Managers:David Ross and Louis Bersin.
Sales representatives: Benjamin CANLORBE,Charles DE SOLAGES, Philippe BLEZ

Risk Indicators (EUR shares):

Top 6 Active Funds compared to the Global Growth category

EnvestBoard Rating - 3-Year Outperformance

Each month, funds within the same category are rated based on their 3-year outperformance relative to the category average.

5 stars: Top 10% of the best-performing funds.
4 stars: Next 22.5%.
3 stars: Next 35%.
2 stars: Next 22.5%.
1 star: Bottom 10% of the least-performing funds.

Glossary

Growth Equities: Shares of companies focused on rapid expansion, often in sectors like technology or healthcare. These companies reinvest their profits to grow, which can make them riskier during economic slowdowns.

Volatility: A measure of the price instability of an asset or fund. High volatility means prices vary significantly, which can indicate higher risk.

Sharpe Ratio: An indicator that measures the performance of an investment relative to the risk taken. The higher the ratio, the better the fund rewards the risk taken by the investor.

Maximum Drawdown: The largest decline of a fund or asset from its peak. It indicates the maximum risk to which an investor would have been exposed.

SFDR (Sustainable Finance Disclosure Regulation): A European regulation aimed at classifying funds according to their consideration of environmental, social, and governance (ESG) criteria.

Article 8: Fund that promotes ESG characteristics.
Article 9: Fund whose primary objective is sustainable impact.

Correlation: A measure of the relationship between two assets or asset categories. A high correlation means the assets move in a similar manner, while a low correlation indicates independent performance.

Active Management: A strategy where fund managers actively choose which securities to buy or sell, relying on analyses and forecasts, to attempt to outperform the market.

Also read: How to choose an equities fund?

About the author: Yufeng Xie

Yufeng Xie is the CEO and co-founder of EnvestBoard, an innovative investment decision-support platform. A graduate of ENSAE Paris (Institut Polytechnique de Paris) with an economics background from the Sorbonne, he brings nearly 20 years of experience in asset and wealth management. Yufeng has held prestigious positions as a product structuring researcher, algorithmic trader, and fund manager at major European financial institutions.

Passionate about economic analysis, mathematics, and artificial intelligence, he founded EnvestBoard to provide advanced analytical solutions, enabling investors to make optimized and informed portfolio allocation decisions.

Please note:

Past performance is not indicative of future results. The content above does not constitute investment advice. It is an objective analysis of financial information.

Past performance is not indicative of future results. Fees are included in the performance figures. The content above does not constitute investment advice. It is an objective analysis of financial information.