Four new funds gain an Elite Rating

FundCalibre has awarded an Elite Rating to four new funds: Brooks MacDonald Defensive Capital, Guinness Global Equity Income, Jupiter Asian Income and Threadneedle UK Extended Alpha.

Clive Hale, director at FundCalibre, commented: “With interest rates at rock bottom and inflation now 1.8%, finding a decent, sustainable income is getting harder and harder. Two of the funds to which we have recently awarded an Elite Rating may be a potential solution to this problem.

Jupiter Asian Income has a current yield of 3.9%* and the manager, Jason Pidcock, looks for companies with reliable dividends that can deliver both income and growth for investors. It aims to capitalise on the opportunities of today, as well as the potential of tomorrow.

“Guinness Global Equity Income has a slightly lower yield of 2.8%* but the total returns have been impressive. The managers look for a growing, rather than high, income and the portfolio typically consists of around 35 equal-weighted stocks, which means that investments are very different from the benchmark index.

“We also decided to award an Elite Rating to Brooks Macdonald Defensive Capital. It is a multi-asset fund in the targeted absolute return sector and while the types of assets that this fund holds can be a bit complicated—convertible bonds, preference shares, structured notes, bond and loan assets, and discounted assets—the goal of delivering positive total returns even when the market falls is straightforward enough.

“Last, but by no means least, is Threadneedle UK Extended Alpha. It invests primarily in large UK companies but, as the name suggests, the manager aims to extend investors’ potential returns by buying stocks he expects to do well and also looking to make money on stocks he expects to do badly (shorting).”

*Source FE Analytics, January 2017

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.