The term global fund refers to a portfolio of stocks and fixed income securities issued by companies and governments around the world. The objective of a global fund is to provide investors with a hedge against inflation, and take advantage of geographies offering faster growth than found domestically.
Global funds attempt to provide investors with the opportunity to realize above average returns relative to funds offering only domestic securities. The term global refers to the source of the fund's securities; it does not describe the asset allocation of the fund. That is to say, a global fund can consist of equities, which provide capital appreciation, or a fund might include a mix of equities and fixed income securities.
There is an important distinction between global funds and international funds. A global fund will contain securities from around the world, including the investor's country. An international fund will contain securities from around the world, and exclude the investor's country.