Funds to watch in 2023
As we start a new year, FundCalibre’s research team takes a look at the funds and trusts we think...
Following FundCalibre’s summer investment committee, a total of eleven funds gained an Elite Rating and eight funds were awarded the Elite Radar badge. A further five funds lost their ratings in the semi-annual review.
1. Allianz Strategic Bond – This fund’s positioning is driven by the team’s macro view. The manager is not afraid to radically alter the fund if the environment changes – as he did going into the coronavirus crisis, delivering spectacular results.
2. Artemis US Smaller Companies – Investing in small and mid-cap companies, stock selection is paramount in this fund, but its overall shape will reflect the manager’s view of the US economy.
3. Aubrey Global Emerging Markets Opportunities – This fund invests in the world’s emerging markets, favouring companies offering products and services to the fast-growing upwardly mobile, ambitious and aspirational consumer.
4. BlackRock European Absolute Alpha – Managers David Tovey & Stefan Gries employ a fully flexible investment approach to European equities in order to try and create positive returns regardless of market conditions.
5. First State Japan Focus – This is a high conviction fund investing predominantly in large and medium-sized Japanese companies. It follows the team’s clear philosophy and process that has proven to be so successful in other parts of Asia.
6. GQG Partners Emerging Markets Equity – This fund is a concentrated portfolio of high quality companies with durable earnings. The emphasis is on future quality, rather than companies which have simply done well historically.
7. Guinness Global Innovators – The managers of this fund invest in innovative and disruptive businesses which are changing the world in which we live. They identify the highest quality, fastest growing and best value stocks within nine innovation themes.
Hear more about this fund in this video interview
8. Jupiter Financial Opportunities – This fund is a concentrated portfolio of ideas from financial services and associated firms from across the globe. This will include areas such as stock exchanges and online payment companies.
9. Polar Capital Biotechnology – This fund invests globally in biotechnology companies, which are developing medicines using various technologies, as our understanding of diseases and how to target them grows.
10. Schroder Sterling Corporate Bond – The manager of this fund focuses on companies – in particular the smaller, often overlooked, issuers – to find the bonds that have been mispriced and are therefore most likely to outperform.
1. LF Blue Whale Growth – In a concentrated portfolio of just 25 to 35 stocks, the manager of this fund only invests in the very highest quality businesses, whilst paying close attention to valuations. He also ignores structurally challenged industries or businesses.
2. VT Downing Unique Opportunities – Launched in 2020, this is a multi-cap UK equity fund run by the highly-experienced Rosemary Banyard. She looks for companies that have sustained competitive advantages, with low debt and good management teams.
3. First State Global Emerging Markets Focus – Investing in 40-45 large and medium-sized companies in emerging markets, manager Rasmus Nemmoe looks for quality companies that can demonstrate sustained and predictable growth over the long term.
4. Jupiter European Smaller Companies – This interesting new fund was launched in February 2020. The manager looks to buy and hold high quality companies experiencing secular growth for the long term.
5. LF Miton US Smaller Companies – Following the success of the LF Miton US Opportunities fund, Nick Ford and Hugh Grieves have now launched this smaller companies offering. They look for exciting disruptive companies which can become big winners in the future.
6. Montanaro Better World – This global equity fund invests in mid and small sized businesses whose products or services are making a positive impact on the world. Themes include environmental protection, the green economy, healthcare, innovative technologies, nutrition and well-being.
1. ASI Global Smaller Companies – Lead manager Alan Rowsell has recently left the company so the fund must lose its Elite Rating. However, Harry Nimmo – who was the co-manager of this fund when it was launched – has been reappointed to the fund to work alongside recently appoint co-manager Kirsty Desson. Due to Harry’s experience and history with this fund, as well as the fact that the same process will be followed, we are happy to award it an Elite Radar.
2. LF Gresham House UK Multi Cap Income – following the third anniversary of this fund and an excellent AlphaQuest score since launch, this fund has moved from the Elite Radar to the Elite Rating.
3. Ninety One Cautious Managed – this fund has had a change of manager recently and therefore must lose its Elite Rating. It has been taken on by an entirely new team, but following a research meeting and subsequent due diligence, the FundCalibre team is happy to award it an Elite Radar.
1. Artemis Global Income – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
2. ASI UK Income Unconstrained Equity – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
3. ASI Emerging Markets Equity – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
4. Federated Hermes US SMID Equity – unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.
5. IIFL India Equity Opportunities – the long-standing management team of this fund have left the company, so the fund must lose its Rating.