Funds gaining and losing the Elite Rating

Following its latest meeting, the FundCalibre investment committee has made a number of changes to the Elite Ratings and Radar awards. Find out more about 10 newly rated funds and discover which funds have lost their badge.

Ten funds gain an Elite Rating

Newcomers to the FundCalibre Elite Rating are:

  1. Artemis Corporate Bond – the team behind this investment grade bond fund aim to build a portfolio designed to weather any economic climate.
  2. AXA Framlington UK Mid Cap – while this fund naturally focuses on medium-sized companies, its manager will be pragmatic about including select opportunities from the small-cap space, as well as letting winners run into large caps.
  3. Close Managed Income – this multi-asset fund sits on the conservative side of the risk spectrum, with preservation of capital a strong focus, alongside income generation.
  4. Montanaro European Income – this fund focuses on small and medium-sized businesses in Europe. Each also offer an attractive dividend yield, or the potential for dividend growth.
  5. Nomura Global Dynamic Bond – the manager of this strategic bond fund invests in the entire range of fixed income sectors including government bonds, corporate bonds, emerging market bonds and inflation-linked bonds.
  6. T. Rowe Price Asian Opportunities Equity – holdings in this fund are found across Asia and tend to be established companies, with leading market positions and good management teams who prioritise shareholder returns.
  7. T. Rowe Price Continental European Equity – this fund invests in quality European companies, with a bias towards mid and small-cap stocks. There is also a strong valuation discipline and close attention is paid to risk.
  8. TB Amati UK Smaller Companies – managed by a trio of highly-experienced managers, this small and mid-cap fund focuses on structural growth businesses.

One fund moves from Radar to Rated:

  1. Baillie Gifford Japanese Income Growth – having passed its third anniversary with an excellent AlphaQuest score, this fund, which is taking advantage of the move towards a progressive dividend-paying policy in Japan, has been moved to an Elite Rating.

One fund gains Radar status:

  1. Investec Global Environment – launched just last year, this is a global equity fund that includes emerging markets, but which has a unique approach of only investing in companies that are contributing to the decarbonisation of the world economy.

Funds moving from Rating to Radar:

Two funds move to Radar, as new managers pick up the reins:

  1. Brooks Macdonald Defensive Capital – having lost a key member of the team, this multi-asset absolute return fund has lost its Elite Rating. However, Dr. Niall O’Connor – who has been part of this fund’s management team for a while – has taken over the reins and, following a detailed research meeting, we are happy to award it a Radar badge.
  2. VT Seneca Diversified Income – this fund has also seen a key member of the team depart. However, moving from a team of five to four, we are confident enough in their abilities that this well-diversified, global multi-asset income-focused fund, should be moved to a Radar rating.

Funds losing their Ratings:

Six funds have unfortunately lost their Ratings:

  1. BNY Mellon Absolute Return Equity – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
  2. BNY Mellon Global Income – the manager and a number of team members for this fund have recently departed the company, so the fund must lose its Rating.
  3. Franklin UK Mid Cap – the long-standing manager of this fund has recently announced his retirement, so the fund must lose its Rating.
  4. Jupiter Absolute Return – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
  5. Merian Global Equity Absolute Return – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
  6. Schroder European Alpha Income – the manager of this fund has just departed, so the fund must lose its Rating, However, we have met the new manager in the past and were impressed. Subject to a further meeting and due diligence, this fund may return with a Radar badge in future.
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.