What is a global fund? Characteristics and examples
A Global fund is a mutual fund or exchange-traded fund that invests in companies and government bonds all over the world. Even though global funds invest worldwide, they maintain a sizable proportion of their assets in **gilt-edged securities.
** Gilt-edged securities are ultra-safe securities.
Global funds provide greater international opportunities for diversification. They also act as a hedge against currency and inflation risks.
According to BusinessDictionary.com, a global fund is:
“Mutual fund that invests in the bonds and stocks of any promising entity in any nation, but maintains a significant percentage of its assets in highly reliable securities.
Global fund vs. international fund
Many people think erroneously that global funds are the same as international funds. They have one important difference.
Global funds invest anywhere in the world, including the investor’s home country.
International funds also invest all over the world. However, they do not invest in the investor’s home country.
For example, a US global mutual fund invests in the US, Canada, Europe, Asia, Latin America, etc. However, a US international mutual fund invests in Europe, Canada, Asia, etc., but not in the US.
People often refer to an international fund as a ‘foreign fund.’
Global Fund to Fight AIDS, TB and Malaria
The Global Fund to Fight AIDS, Tuberculosis and Malaria is an international financing organization. People also refer to it simply as The Global Fund.
The organization attracts and disburses additional resources to treat and prevent AIDS, HIV, tuberculosis, and malaria.
It is a public-private partnership, i.e., a PPP, with headquarters in Geneva, Switzerland. The organization was one of the first private foundations among several bilateral donors to provide seed money for the project.
American business magnate, investor, and philanthropist, Bill Gates, founded the organization in 2002.
It is the largest financier of AIDS, TB, and malaria programs in the world. From 2002 to July 2016, it had disbursed approximately $30 billion to communities and nations in need.
According to TheGlobalFund.org:
“The Global Fund is a 21st-century partnership organization designed to accelerate the end of AIDS, tuberculosis, and malaria as epidemics.”
“The Global Fund raises and invests nearly US$4 billion a year to support programs run by local experts in countries and communities most in need.”
Video – The Global Fund
This Gates Foundation video explains how The Global Fund to Fight AIDS, Tuberculosis and Malaria works. The organization saves millions of lives each year. In fact, between 2002 and August 2013, it saved approximately seventeen million lives.