Summer 2024: the funds gaining and losing their Elite Ratings

As we celebrate our 10th anniversary, we’re happy to announce we’re welcoming 12 new funds to our ranks. Following its summer investment committee, FundCalibre has awarded 10 new Elite Ratings and 2 new Elite Radar badges. A further 6 funds have moved between the ratings, while 15 funds have lost their ratings.

Ten newly Elite Rated funds

Artemis UK Select — This high-conviction, multi-cap UK equity fund stands out for its value bias and ability to short select positions. Managed by experienced duo Ed Leggett and Ambrose Faulks, the fund has consistently outperformed since 2015, though it comes with elevated risk. Its flexible stock-selection strategy targets substantial long-term gains, but investors must be comfortable with potential drawdowns during market stress. Overall, this fund is a strong option for those seeking high returns in exchange for greater volatility.

Baillie Gifford Pacific — A high-conviction growth fund focusing on the Asia Pacific region emphasising long-term growth opportunities. Unlike other Baillie Gifford funds, it shows more pragmatism by rotating into cyclical sectors when needed. While the fund can experience volatility, its flexibility and focus on companies with durable growth potential have consistently driven strong performance. It is an appealing choice for growth-oriented investors who can handle short-term swings and want exposure to this dynamic market.

BlueBay Global Investment Grade Corporate Bond — Targeting 1.5% outperformance annually, this core bond fund predominantly invests in investment grade bonds, with up to 15% in high yield bonds. BlueBay’s expertise in fixed income, backed by a well-resourced team of macro, credit, and ESG analysts, ensures a disciplined approach to portfolio management. The fund’s steady performance makes it a solid core option for portfolios with bond allocations.

Fidelity UK Smaller Companies — This contrarian value fund focuses on unloved areas of the UK small-cap market, with 80-100 holdings and up to 20% in non-UK and non-small-cap ideas. It has a stellar long-term track record, delivering outperformance even during periods when value investing is out of favour. Led by manager Jonathan Winton, the fund’s success stems from Fidelity’s strong research team and an ability to uncover under-appreciated opportunities, making it an attractive option for value-focused investors.

FTF ClearBridge Global Infrastructure Income — Specialising in listed infrastructure, this high-yielding fund combines regulated utilities with demand-based infrastructure like railways and roads. It targets a yield over 5% and offers income with stable growth and inflation protection. Managed by a seasoned team, the fund’s strong performance and dividend growth make it a compelling option for income-seeking investors.

GQG Partners Global Equity — This concentrated, benchmark-agnostic portfolio focuses on quality companies with durable earnings. GQG Partners leverages its highly experienced team to identify companies with strong future growth potential, rather than relying on past performance. The fund’s nimble, dynamic approach allows it to seize market opportunities quickly. With a proven track record of consistent outperformance, this fund is ideal for growth-focused investors seeking a flexible, global equity strategy.

M&G Global Emerging Markets — An unconstrained, bottom-up stock-picking fund seeking businesses with strong returns on capital, attractive valuations, and shareholder alignment. Managed by Michael Bourke since 2018, the fund’s contrarian approach and focus on cash flow have delivered excellent long-term performance. Its low turnover and thorough process make it a standout option for investors seeking a differentiated approach to emerging markets.

M&G Japan Smaller Companies — This bottom-up fund targets Japanese mid and small-cap stocks, aiming for capital growth and income. Managed by Carl Vine and his team, their in-depth knowledge of Japan and valuation-sensitive strategy have driven impressive long-term performance in this challenging market. Their strong company engagement uncovers unique investment opportunities, making the fund an interesting option for investors seeking exposure to Japanese smaller companies.

T. Rowe Price Global Select Equity — This unconstrained, high-conviction fund seeks global opportunities while maintaining a strong risk management framework. Managed by Peter Bates, it aims for outperformance across a full market cycle. With an experienced team of analysts, clear investment process, and dynamic stock selection, the fund is well-positioned for long-term success. It is a high-quality choice for investors seeking a well-rounded global equity portfolio.

WS Canlife Diversified Monthly Income — This diversified fund invests in global shares, international bonds, and property, aiming to provide a steady monthly income with a yield of at least 4%. The fund prioritises income generation while managing risk through a balanced approach to asset allocation with the managers leveraging the extensive resources of Canada Life. With a robust risk management process and a focus on stable returns, this fund has delivered solid performance since its launch, making it a solid choice for income-focused investors.

Two new Elite Radar badges

BlueBay Investment Grade Global Government Bond — This core global government bond fund offers active management at a competitive cost, targeting 1.5% outperformance annually. BlueBay’s fixed income expertise and macro team support the fund’s disciplined approach to delivering returns, even in a traditionally passive space. Its low fees and early outperformance make it a solid option for adding government bond exposure to a portfolio, particularly with today’s higher yields.

Invesco Emerging Markets ex China — This contrarian, valuation-driven fund invests in 35-45 companies across emerging markets, excluding China. It aims for double-digit returns over a 3-5 year horizon, focusing on under-appreciated opportunities. Backed by Invesco’s experienced emerging markets team, the fund offers diversification for investors seeking emerging markets exposure while reducing concentration risk in China. Despite its recent launch, the fund’s early performance has been promising.

Two funds moving from Radar to Rated

GQG Partners US Equity — A concentrated, unconstrained portfolio of high-quality US companies with durable, forward-looking earnings. The team’s familiarity with thousands of companies and the fund’s flexibility enable quick, decisive action in response to market opportunities. With a strong focus on future-proofed quality, this fund is well-suited for investors seeking robust, long-term growth in the US equity market. With a three-year track record and having passed AlphaQuest, it now moves from Radar to Rated.

Invesco Tactical Bond — The most flexible fund in Invesco’s fixed income range, offering exposure across the full spectrum of fixed-income opportunities. By leveraging the best ideas from Invesco’s extensive team, the fund has consistently delivered strong performance. Its dynamic, wide-ranging approach to fixed income investing makes it an attractive choice for investors seeking flexibility and tactical positioning within their bond portfolios. With a four-year track record and having passed AlphaQuest, it now moves from Radar to Rated.

Four funds moving from Rated to Radar

AXA Framlington Global Technology — AXA’s head of technology, Jeremy Gleeson, and lead manager on this fund, left the firm this month. Tom Riley, who has co-managed the fund since April 2019, will continue co-managing the fund. There will be no changes to the fund’s objective. We are therefore happy to move it to an Elite Radar until a formal meeting with the new lead manager is conducted.

Fidelity Global Special Situations — Following the retirement of lead manager, Jermey Podger, Christine Baalham and Tom Record took over this fund in March 2024 as lead and deputy manager respectively. After meeting both Christine and Tom, we believe the managers have complementary styles and this fund continues to have the potential as a core holding in the future under the new manager. We are therefore happy to move it to an Elite Radar.

JPM US Equity Income — Long-term manager Clare Hart is set to retire in September this year. Andrew Brandon and David Silberman, who have co-managed the fund since November 2019, will continue co-managing the fund. There will be no changes to the fund’s objective, or the way they select holdings. We are therefore happy to move it to an Elite Radar.

T. Rowe Price US Smaller Companies — Manager Curt Organt has been at T. Rowe Price for 24 of his 26-year investment career and is set to retire from T. Rowe Price. Matt Mahon, who has co-managed the fund since September 2023, will take over lead management of the fund effective 30 September 2024. Given the team approach to the portfolio management and handover of the portfolio to Matt, we are happy to move this fund to an Elite Radar.

15 funds losing ratings

abrdn SICAV I Global Mid Cap Equity — The manager now has a track record of more than three years, but the fund has failed to pass AlphaQuest to move to an Elite Rating. It therefore loses its Elite Radar badge.

Allianz Strategic Bond — Manager Mike Riddell left Allianz at the end of June and therefore the fund must lose its Elite Rating.

AXA Framlington Japan — The senior portfolio manager, Chisako Hardie, left the fund and therefore the fund must lose its Elite Rating.

Baillie Gifford Global Discovery — The fund has had a deteriorating AlphaQuest score and no longer passes our minimum threshold. Therefore, the team had to make the decision that it should lose its Elite Rating.

Baillie Gifford Strategic Bond — The fund has had a deteriorating AlphaQuest score and no longer passes our minimum threshold. Therefore, the team had to make the decision that it should lose its Elite Rating.

Federated Hermes Global Emerging Markets SMID Equity — The manager now has a track record of more than three years, but the fund has failed to pass AlphaQuest to move to an Elite Rating. It therefore loses its Elite Radar badge.

FSSA Japan Focus — FSSA is expected to seek permission from the FCA to close the fund as the portfolio undergoes a strategic review as the assets under management fell under £100m. While there are no guarantees, the fund could be closed by the end of 2024. Therefore, we have made the decision that the fund should lose its Elite Rating.

FTF Martin Currie European Unconstrained — The fund has had a deteriorating AlphaQuest score and no longer passes our minimum threshold. Therefore, the team had to make the decision that it should lose its Elite Rating.

Man GLG Strategic Bond — The fund has had a deteriorating AlphaQuest score and no longer passes our minimum threshold. Therefore, the team had to make the decision that it should lose its Elite Rating.

Ninety One Global Income Opportunities — The manager now has a track record of more than three years, but the fund has failed to pass AlphaQuest to move to an Elite Rating. It therefore loses its Elite Radar badge.

Redwheel Biodiversity — While we continue to hold this fund in high regard, the fund is not yet available on mainstream platforms and therefore the team has made the decision that it should lose its Elite Radar badge until a time when the fund is more readily available to investors.

T. Rowe Price Japanese Equity — Lead manager Archie Ciganer left T. Rowe Price in July and therefore the fund must lose its Elite Rating.

TM CRUX UK Special Situations — The fund has had a deteriorating AlphaQuest score and no longer passes our minimum threshold. Therefore the team had to make the decision that it should lose its Elite Rating.

Trojan Global Income — The fund has had a deteriorating AlphaQuest score and no longer passes our minimum threshold. It therefore loses its Elite Rating.

WS Montanaro Better World — The manager now has a track record of more than three years, but the fund has failed to pass AlphaQuest to move to an Elite Rating. It therefore loses its Elite Radar badge.