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23rd July 2015

FundCalibre celebrates its first birthday

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By Tony Yousefian

FundCalibre was launched at the end of July 2014 with the sole intention of providing a refreshingly new and effective independent rating methodology to identify and rate talented fund managers and make the research available free of charge for use by private investors.

Such has been the success of the website that in its first year it has had more than 22,000 visitors, growing from 1,000 visits per month from a standing start to more than 4,500 in June. These visitors have viewed more than 210,000 pages between them.

We launched with 114 Elite Rated funds from 38 companies. One year on, this number has increased to 127 funds from 43 companies.

With around 3,000 investable funds available to UK investors, this may not sound much but the methodology and the process used in rating funds is extremely rigorous. We aim to rate around 10% of the funds in each sector, thus maintaining the selectivity of the rating. The rating appraisal is a two-stage process. There are many funds that pass stage one, which is a quantitative process, but fail stage two, the qualitative assessment. Only funds that pass both stages will receive a rating.

The impact of fund selection on your wealth

There are plenty of empirical studies to show that after what the experts call “asset allocation” (deciding which type of assets you would like to invest your money in such as UK equities, European equities, property etc.) by far the most important factor in how much or how little money you make is “stock selection”, in our case that would be fund selection.

Just as an example, if we take a look at the Investment Association's UK All Companies sector, there are 275 funds, 271 of which have been in existence since FundCalibre launched. Over the past 12 months*, the average fund grew by a respectable 9.56%, but the worst performing lost 1.92%. It’s the difference of flying premium economy as opposed to cattle class. However, if you were fortunate enough to have picked the best-performing Elite Rated fund in this sector, your returns would have been 26.84%. Now that’s first class flying.

More than just a ratings website

FundCalibre has come a long way in its first year of existence, but we are not resting on our laurels, and have ambitious plans for further refining and development of the website. Watch this space! However, our guiding premise will always be to provide you with a free, robust and reliable validation process for your investment decisions.

*Source: FE Analytics, 28th July 2015 to 22nd July 2015

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