Spring 2021: the funds gaining and losing their Elite Ratings
Following FundCalibre’s Spring investment committee, two new funds have gained an Elite Rating and...
Following our latest investment committee, we have awarded an Elite Rating to 10 new funds. Here are the newcomers:
TM Home Investor – While there are numerous funds that invest in commercial property, this fund is unique as it is the only fund in the UK to invest in residential property. It owns private rented sector housing across the UK, particularly in regions that offer good rental demand. It is an alternative option for investors who can’t afford – or who don’t want to take on – their own buy-to-let portfolio, as well as other investors wanting the diversification and income benefits of residential property.
LF Seneca Diversified Income – This fund will appeal to income-seeking investors, as it has a current yield of 4.98%, which is distributed monthly. It is a well-diversified global multi-asset income-focused fund, which makes use of all the different asset classes available including private equity and specialist finance where suitable in meeting the fund’s objective.
BlackRock Corporate Bond – We like this fund’s flexible mandate and the manager’s track record of consistently exploiting inefficiencies in the fixed income market. He combines macroeconomic views on the wider economy with fundamental bottom up research and has access to Blackrock’s huge resource of fixed income specialists in order to uncover the best ideas.
TwentyFour Corporate Bond – Constructed using a total return mindset, this fund looks to achieve the highest possible income with the least amount of volatility and has some of the best risk-adjusted returns in the sector. The manager uses a bespoke quantitative screening tool which he developed himself to find ideas.
Chelverton UK Equity Growth – This hidden gem invests in the UK’s smaller (and some medium)-sized companies, with the managers targeting cash-rich businesses capable of funding their own growth. Launched in 2014, this excellent performing ‘minnow’ has remained under the radar of many investors.
Montanaro UK Income – Run by veteran investor Charles Monanaro, this fund also invests in medium and smaller UK companies but in addition looks to produce an attractive income – currently 3.4%. Charles and his team produce their own high-quality research, rather than relying on external brokers and their track record in finding good stocks is excellent.
Schroder European Alpha Income – This fund offers income investors something a little different: often avoiding the usual ‘dividend aristocrats’ that are favoured by many of its peers, and investing in more cyclical companies too. The manager is willing to adapt to any situation and has shown a strong ability to pick successful companies.
FP Crux European Special Situations – When the manager of this fund left Henderson, the assets transferred with him to his newly formed company. It has a strong focus on small and mid-caps and turnover has traditionally been low. It is unconstrained by country and focuses on quality, cash generative companies that can do well, even if markets become challenging.
AXA Framlington Japan – This multi-cap fund invests in companies enjoying structural growth, independent of the wider economy. The manager finds many of her best ideas in the small-cap portion of the market and while she favours growth companies, her valuation discipline means the fund has less of a style bias than some of its peers.
LF Miton US Opportunities – This US equity fund has a refreshingly different composition to many of its peers, with a significant part of the portfolio allocated to domestically-orientated small and medium-sized companies. The managers focus on businesses which have a sustainable competitive advantage versus their peers and which are the best in their field.
At the same investment committee, it was decided that seven funds should lose their Elite Rating. Find out which ones and why, here.