Investing in the Women’s World Cup winners

Is it finally coming home? The 2023 Women’s World Cup has kicked off in Australia and New Zealand and hopes are high that England can bring home the trophy. The Lionesses go into the tournament as reigning European champions after Chloe Kelly’s goal in extra time clinched a 2-1 victory over Germany at Wembley last year.

And now they’re hoping to repeat their success on the world stage and put a smile on the face of passionate England fans across the country. However, it won’t be an easy task as they will be among a record 32 teams trying to prevent the US sealing their third consecutive title.

Investing in the winners

The world championship has been held every four years since 1991. This means eight tournaments have previously taken place, with four countries having emerged victorious.

This tournament kicking off gives us the perfect excuse to look at the various investment funds putting their money into companies based in competitor countries.

Here we look at the top four nations in women’s international football, as ranked by the football governing body FIFA, and suggest funds to consider if you want exposure to them.

We also consider which portfolios provider exposure to the remaining previous winners that aren’t so highly ranked.

Top contenders

USA

The defending champions – and looking to clinch their third consecutive world crown – the United States has the most successful record in women’s football. The team has won four out of the eight championships held so far. The US won the first ever tournament in 1991, then followed it up with victories in 1999, 2015 and 2019.

When it comes to US equities we like the AXA Framlington American Growth fund as it focuses on innovative companies with unique brands and impressive intellectual quality.

Its manager, Steve Kelly, is very experienced and been involved in US equity markets for more than 25 years. He has been at the helm of this fund since joining AXA in 1997.

Other funds covering the US that are worth a look include Premier Miton US Opportunities, Schroder US Mid Cap, and Artemis US Smaller Companies.

Research all Elite Rated US equity funds here.

Germany

The second most successful country in the women’s world cup is Germany. It has won the tournament twice – in 2003 and 2007 – and is currently number two in the world rankings, behind the US.

Germany currently accounts for 12% of the country allocation in the LF Montanaro European Income fund, managed by Alex Magni and George Cooke*. Its largest holdings include Munich-based MTU Aero Engines and Brenntag, the chemical distribution company, whose headquarters are in Essen*.

Montanaro, which is a specialist in small and medium-sized companies, is renowned for its large team of analysts and high quality small-cap research. Elsewhere, you can also get exposure to Germany via the IFSL Marlborough European Special Situations fund,* which is a true stock picker’s portfolio.

Sweden

The third ranked team is Sweden. Its only appearance in a world cup final came in 2003 when the team was beaten 2-1 by Germany. However, the team has been tipped to be one of the tournament’s favourites this year, due to having plenty of experience in the squad.

Andreas Zoellinger’s BlackRock Continental European Income fund has a 9.4% country allocation to Sweden, according to its factsheet*. The fund searches for undervalued European companies that offer reliable, sustainable dividends, potential dividend growth, and inflation protection, with a lower level of risk. The manager’s experience and BlackRock’s strong European team make for a compelling combination, in our opinion.

Research all Elite Rated European equity funds here.

England

We are the fourth highest ranked team in women’s football and the reigning European champions, having won the title last summer at Wembley. Although the Lionesses have never won the world championship, they have reached the semi-finals in the last two tournaments. Could they go one step further this time?

One of our picks for accessing large companies listed on these shores is the CT UK Extended Alpha fund, which is run by Chris Kinder. This fund offers something different to its peers because Chris can profit from both rising and falling share prices, due to the portfolio’s ability to ‘short’ those he expects to do badly. Liontrust Special Situations, TB Amati UK Listed Smaller Companies, and the Schroder British Opportunities investment trust are other ways to access the UK market.

Research all Elite Rated UK equity funds here.

Previous winners

Aside from the aforementioned US and Germany, the two other winners in the tournament’s history are Norway, which emerged victorious in 1995, and Japan who were crowned in 2011.

The LF Lightman European fund has just under 10% geographical exposure to Norway, according to the most recent factsheet*. One such holding is in Equinor, a broad international energy company headquartered in the country, which has more than 20,000 employees in 30 countries*.

This fund, which is managed by the experienced Rob Burnett, could be a great option for investors that are able to stomach potential volatility. It has a heavy value bias and is likely to be a portfolio that will find itself either at the top or bottom of the performance tables.

As far as Japan is concerned, there are plenty of investment funds that can give you exposure to this intriguing country. For example, we like the Pictet Japanese Equity Selection fund, which adopts a high conviction strategy that invests in large and medium-sized businesses for the long term. Sam Perry, the lead portfolio manager, offers investors excellent exposure to a country in the world whose recovery may prove a success story in years to come. He uses a four-step process that implements both quantitative and qualitative methodologies to aid his research.

Other Japanese funds that are worth considering include AXA Framlington Japan, Baillie Gifford Japanese Income Growth, and Comgest Growth Japan.

Research all Elite Rated Japanese equity funds here.

*Source: Fund factsheet, 30 June 2023

_{Photo by FIFA Museum}