Seven funds lose Elite Rating
At our research team’s annual investment committee review meeting in July 2018, it was deci...
The fund’s performance, relative to its sector, has been quite strong, but it typically takes a lot more risk than its peers. This has resulted in a declining AlphaQuest score, as well as high alpha volatility.
This fund has now underperformed its sector average over three years, while its volatility continues to be higher than its peers. This has resulted in a rapid deterioration of the AlphaQuest score, both over those three years and since launch in 2009.
We are concerned that the size of the fund (and others following the same strategy) has inhibited the managers’ ability to continue to generate out-performance. The AlphaQuest score has now fallen below the required level over a number of calendar years.
The fund had a poor 2016 in terms of performance and also because it lost one of its co-managers, Jan Luthman, who retired. The AlphaQuest score has fallen below the required level. Alpha volatility also increased, suggesting a lack of consistency. In such a competitive sector, we believe there are other funds more deserving of the Elite Rating.
For the same reasons as the Liontrust Macro Equity Income fund, the AlphaQuest score of this fund has fallen below the required level. It is also in a very competitive sector and we believe there are other funds more deserving of the Elite Rating.
This fund has performed very well in the past but unfortunately, recent performance has been very weak, as the fund manager’s macroeconomic views have failed to materialise. Alpha generation has deteriorated and the AlphaQuest score has fallen below the required level.
View funds that have recently gained an Elite Rating