Winter 2020/21: the funds gaining and losing their Elite Ratings

Following FundCalibre’s Winter investment committee, two investment trusts have gained an Elite Rating, as have two Radar funds that now have a three year track record. Two funds have also been awarded a new Radar badge, while four funds have lost their ratings due to manager changes or a deteriorating AlphaQuest score.

Two newly Rated trusts:

JPM China Growth & Income
The performance of this trust has been nothing short of exceptional in recent years. Launched in 1993, the managers are growth-oriented investors who target higher quality companies within their ‘best ideas’ approach to the Greater China region, while also paying an income. They are ably supported by one of the most extensive and experienced research teams in the area, offering strong local expertise and in-depth coverage.

JPM Emerging Markets
With its 30th anniversary falling this year, this investment trust has an established long-term track record of investing in emerging market equities. Backed by one of the largest emerging market research teams, manager Austin Forey has delivered excellent returns on this trust for more than two decades, demonstrating his long-term approach to stock picking has been successful, whilst also being able to evolve this portfolio to meet changing trends.

Two funds gain an Elite Radar:

Invesco Global Focus
This is a high conviction, concentrated fund, which invests in structural growth winners. The manager, who took over the portfolio in February 2020, has a refreshingly simple approach: understand the structural trends which are changing the world and then invest in the best companies which are benefitting from these trends. He combines this simple philosophy with detailed fundamental research and management meetings on individual stocks.

Aberdeen Standard SICAV I – Global Mid-Cap Equity
This recently launched fund is a natural extension to ASI’s successful small cap offerings. It targets the ‘next 15%’ up the market cap and uses the same tried and tested process and Matrix tool which co-manager Harry Nimmo helped create. Capturing the ‘graduates’ from the small cap universe, as well as new ideas, it was designed for investors who have a lower risk appetite, but still like the growth profile associated with companies towards the smaller end of the market.

Two movers:

LF Blue Whale Growth
LF Blue Whale Growth has come storming onto the global equity funds scene since its launch in September 2017. It is a truly active fund with a very concentrated portfolio of just 25 to 35 stocks. Manager Stephen Yiu only invests in the very highest quality businesses and ignores those that are structurally challenged. It comfortably passes the AlphaQuest screen over three years and has been moved from an Elite Radar to an Elite Rating.

TB Evenlode Global Income
Since its launch in November 2017, performance of this fund has been strong. It has a clear investment philosophy and a process that was proven to be very successful with TB Evenlode Income and has now been replicated in this global mandate. The managers are not afraid to be radically different from their benchmark and the dividend held up better than the market in a very difficult 2020. It also comfortably passes the AlphaQuest screen over three years and has been moved from an Elite Radar to an Elite Rating.


Four funds losing their ratings:

RWC Continental European Equity
Despite performing very well, one of the co-managers of this fund has decided to retire and the other is leaving to join another company. Therefore RWC has taken the difficult decision to close this fund and it obviously loses its Elite Radar.

Man GLG Japan Core Alpha
Unfortunately, the AlphaQuest score of this fund has deteriorated, so the fund has lost its Rating.

Jupiter Distribution
Co-manager Alastair Gunn has left the company and Rhys Petheram has changed mandates. The fund is now run by Talib Sheikh who is Head of Strategy, Multi-Asset at Jupiter. As the manager’s track record is less than three years, the fund must lose its Rating.

Royal London UK Equity income
Manager Martin Cholwill has announced that he will retire from his role later this year.
Although the new manager, Richard Marwood, has been deputy manager for a while, the fund’s performance track record was that of Martin and, as such, the fund will have to lose its Elite Rating.

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.