The Elite rating is attributed to funds with “highly skilled” managers and involves a four-step screening process. No more than 10% of funds in any sector are given the top rating. Meanwhile, the Elite Radar badge covers funds that are potential candidates for the higher rating.
In this edition, the Aegon High Yield Bond; Ashoka India Equity investment trust; BlueBay Emerging Market Unconstrained Bond; Comgest Growth America; Fidelity Asian Smaller Companies; Martin Currie Global Portfolio trust and Ninety One Diversified Income were all awarded an Elite Rating.
The £1.8m Aegon High Yield Bond fund was commended for its “high conviction” and “flexible” approach by the firm’s research director Juliet Schooling Latter.
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It has outperformed the IA Sterling High Yield sector over a one-, three- and five-year period, according to data from FE fundinfo, generating 9.4% total returns in the last three years.
Schooling Latter highlighted the £323.1m Ashoka India Equity investment trust has been the best performer in the IA India/Indian Subcontinent sector since its 2018 launch.
The trust’s share price is up 71% in the past three years, while its net asset value has grown 72.8%. In comparison, the sector’s average share price was up 33%, while its NAV was 35.7% over the same period, according to data from the Association of Investment Companies.
The strategy’s stock selection, approach to ESG and unique fee structure were all recognised as strengths by FundCalibre.
Schooling Latter said the the $473.4m BlueBay Emerging Market Unconstrained Bond was managed by an “exceptionally experienced and well-resourced team”, with a historically “extremely consistent” investment process.
The fund has outperformed the IA Global EM Bonds – Blended sector since its launch in 2022. Over the last 12 months, it is up 14.8% while the sector has gained 4.9%.
With regards to the $900m Comgest Growth America fund, Schooling Latter recognised the employee-owned collegiate partnership culture of the firm, noting they operate “with a flat hierarchy where managers serve the dual role of portfolio managers and analysts”.
Despite its recent launch in June 2023, over the past six months it has returned 16.4%, while the IA North America sector is up 12.6%
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Schooling Latter said the $1.3bn Fidelity Asian Smaller Companies strategy is a “genuine stock-picking fund”, with manager Nintin Binaj taking a contrarian ‘value’ bias and high active share.
Over the past three years, the fund has returned 21.7%, while the IA Asia Pacific Excluding Japan sector is down 13.9% over the same period.
Meanwhile, the manager of the £272.7m Martin Currie Global Portfolio trust, Zehrid Osmani, was described as “an excellent manager of high conviction strategies” by Schooling Latter.
She also commended the use of future options and swaps to hedge equity, duration and credit risk in the £944.2m Ninety One Diversified Income fund, which is down 1.8% over a three-year period, outperforming the IA Mixed Investment 0-35% Shares sector’s 3.9% loss.
Elite Radar Badges
The potential candidates for future Elite ratings were Artemis Leading Consumer Brands; GQG Partners US Equity; Man GLG Dynamic Income and Redwheel Biodiversity.
Launched in December 2023, the £11.6m Artemis leading Consumer brands fund is a global thematic fund that seeks to capture the emerging middle class’s consumption of luxury brands.
Swetha Ramachandran, who joined Artemis from GAM last year, was described as “very capable hands” along with her team.
GQG Partners US Equity has a concentrated portfolio of high-quality US companies. According to Schooling Latter, the strategy’s quality focus allows them to strip away labels like value or growth.
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According to its latest factsheet, the fund is up 22.4% over the past year, compared to the S&P 500 index, which has gained 20.8%.
“GQG’s surge in popularity and reputation as a trusted asset manager is not by chance. This fund has provided stellar returns for investors since launch, and we expect this to continue,” Schooling Latter added.
The $210.7m Man GLG Dynamic Income, managed by Jonathan Golan, was launched in July 2022. According to Schooling Latter, the mandate will give Golan, who spent the first ten years of his career managing corporate bonds, “greater flexibility to pursue his best ideas”.
The Redwheel Biodiversity fund, which holds $674,600 and was launched in October 2023, aims to profit from the drive to protect biodiversity.
“The fund has only recently launched so it will have to prove it can deliver long-term results – but is certainly one to watch given the scope for growth in this market,” Schooling Latter said.
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