Three funds lose ratings due to significant changes
By Staci West on 8 January 2026 in Basics
In September 2025 the Schroder British Opportunities Trust (SBOT) approved a major change to the company’s investment objective and policy. The company’s strategy has shifted to focus entirely on a diversified portfolio of private equity investments in predominantly UK companies.
This change materially alters the trust’s risk profile. Private equity assets are inherently less liquid and more difficult to buy and sell, which can lead to greater share price volatility and a wider, more persistent discount to net asset value (NAV). The new approach also increases exposure to smaller, less frequently valued companies.
While we recognise the potential long-term opportunities in this area, we believe the revised strategy makes the trust more specialist and higher risk/reward than when it was originally rated. As a result, and after careful consideration, we have decided to remove our Elite Rating from the trust.
Additionally, Franklin Global Trust (FGT) announced plans to merge with Invesco Global Equity Income Trust (IGET). The proposed merger brings an end to FGT as a standalone trust and removes the investment approach on which its rating was originally based. FGT manager Zehrid Osmani has also stepped down ahead of the proposed merger. In light of the forthcoming structural changes, we believe it is appropriate to remove the trust’s Elite Rating. However, we will meet with the management team of IGET in due course following completion of the merger to reassess the combined trust.
Finally, earlier this week, it was announced that Ben Moore, manager of the CT European Select fund will be leaving Columbia Threadneedle to move to BlackRock’s European equities team. Unfortunately, this change in management must result in the removal of our Elite Rating on the fund.
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.
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