Seven funds lose Elite Rating

At our research team’s annual investment committee review meeting in July 2018, it was decided that the Elite Rating on seven funds should be removed:

BlackRock Gold & General

This is a highly specialist and volatile fund run by a very experienced team. However, recent performance versus peers has been a bit weaker than we would have hoped and it hasn’t behaved as expected.

Fidelity Enhanced Income

The value style of the fund has been out of favour for some time and it has underperformed its peer group leading to a weakening AlphaQuest score.

Fidelity MoneyBuilder Balanced

This fund is in the IA Mixed Investments 40-85% Shares sector but has been run very cautiously in recent years, leading to underperformance.

Jupiter European Special Situations

Recent performance of this fund has been disappointing and the AlphaQuest score has deteriorated.

Jupiter UK Growth

This fund has had a bias to domestic UK businesses, which has led to it being quite volatile. It no longer passes the AlphaQuest screen.

Sanlam FOUR Stable Global Equity

This fund’s primary objective is a return of cash plus 6%, but this aim has not been met recently and its AlphaQuest score is now too low.

Woodford Equity Income

The longer term track record of this fund’s manager remains superb. However, after a strong start, performance has deteriorated due to a number of individual stock issues and the fund no longer has a sufficient AlphaQuest score.

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.