Funds lose Elite Rating after latest investment committee review

During our July investment committee review meeting, we decided to remove the Elite Rating from the following five funds, as they no longer pass the AlphaQuest screen.

Aberdeen Asia Pacific Equity and Aberdeen Global Asian Smaller Companies

We believe that these funds became too large to manage. Coupled with the difficulties of a team decision making process, when analysts are spread across five different countries, this has had an impact on performance. With the asset class so much out-of-favour, these funds are in heavy redemption and we do not expect the situation to change any time soon.


The fund has underperformed, despite having a bias towards mid and small cap companies, which have done very well in Japan over the past few years. It is now behind the sector average over one, three and five years.

Legg Mason Global Equity Income

The fund has performed in line with the average fund in the sector over three and five years but its more recent performance has been disappointing. We think there are now better alternatives in this increasingly competitive sector.

M&G UK Inflation Linked Corporate Bond

Whilst the fund has been less volatile than the sector average, due to taking less duration risk, it has substantially underperformed the average index-linked gilt fund despite taking on the extra credit risk associated with corporate bonds. It has also failed in its primary objective to beat inflation since launch.

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.