Rathbone Global Opportunities: a tried and tested approach

In recent times, the performance of the global stock market has largely been driven by a handful of mega cap AI-related companies, such as high-end chip designer Nvidia. Funds that have not mirrored the significant index weightings of these stocks have lagged behind their benchmarks, with Rathbone Global Opportunities being a case in point.

Despite its clear growth tilt, the experienced managers of this widely held member of the Select 50 have refused to create a portfolio that is too narrowly focused on AI. They are concerned that the excessive profit growth of some of these stocks may not be sustainable for much longer, potentially leaving them exposed to a correction.

This does not mean that they are avoiding AI - far from it - it is just that they have targeted a broader group of possible beneficiaries where growth is likely to be more durable. They also expect market performance to broaden out, which would favour their more balanced approach.

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Objective and methodology

Rathbone Global Opportunities aims to deliver a greater total return than the Global Sector average, after fees, over any five-year period.¹ It has one of the longest serving lead managers in the area, with James Thomson having been at the helm since 2005. He is supported by co-manager Sammy Dow, who joined in 2014, and a team of 10 equity research analysts.²

The managers target companies that exhibit certain quality and growth characteristics. Idea generation is more qualitative than quantitative, with the team relying on their industry experience, company meetings and research to identify potential holdings.³

There is a clear tilt towards growth, which means the fund’s returns can differ materially from those of its peer group and benchmark, particularly when its investment style is out of favour. However, there is also an element of balance in the portfolio, with sensible limits on position sizes and the inclusion of a 20% allocation to defensive companies to provide some downside protection.⁴

The portfolio

Thomson has applied the same strategy to the fund for more than two decades. He believes that investing in a concentrated portfolio of 40 to 60 companies with economic moats and strong growth prospects that have not yet been recognised by the market can generate long-term outperformance.⁵

At the end of July, the ten largest holdings accounted for 28% of the £3.2 billion in assets under management, with no individual position being more than 4%. These included well-known names such as Nvidia, Apple, Visa, Amazon and Next, as well some less familiar companies.⁶

Rathbone Global Opportunities Fund top 10 holdings

1. Amphenol
2. Nvidia
3. Alphabet
4. Apple
5. Crowdstrike
6. Schneider Electric
7. Visa
8. ARM Holdings
9. Amazon
10. Next

Source: Rathbone Global Opportunities Fund Factsheet, 31 July 2026

The portfolio is dominated by US stocks, which make up 75% of the fund, followed by Europe ex UK at 17%. Interestingly, Technology is only the third-largest sector, with a 21% allocation, behind Industrials and Consumer Discretionary at 24% and 22%, respectively.⁷

Performance and cost

Fundhouse, the independent research company that partners with Fidelity International to compile the Select 50, says that the fund has delivered strong outperformance relative to its peer group and benchmark over the two decades it has been managed by Thomson. However, in recent years it has underperformed.⁸

This can also be seen from the returns data. During the five years to the end of July, the S GBP accumulation share class lagged behind the global sector average, with a gain of 22.5% versus 43.9%.⁹

The performance attribution conducted by Fundhouse suggests that stock selection has been weaker in the last five years, but has been the main driver of excess returns over all other time periods. These excess returns have been generated across a variety of sectors and geographies, rather than just US tech, which was responsible for much of the alpha of global equity funds over the last decade or so.¹⁰

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. Select 50 is not a personal recommendation to buy or sell a fund. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.