Three funds gain ratings this autumn
Following its Autumn investment committee meeting, FundCalibre has awarded one new Elite Rating and two Elite Radar badges. Regnan Sustainable Water and Waste receives an Elite Rating, while IFSL Wise Multi-Asset Income and Nutshell Growth are awarded Elite Radar badges. A further two funds move between ratings.
New Elite Rating
Launched in 2021, Regnan Sustainable Water and Waste is a global, high-conviction fund that targets companies within the water and waste value chains, emphasising medium-sized firms with strong earnings visibility. This ESG-integrated strategy is distinctive, tapping into under-researched themes and offering investors a unique product with minimal overlap with traditional global equity portfolios. Managed by a highly experienced team known for pioneering this sector combination, the fund has demonstrated impressive performance, returning 26.4% since inception compared with 16.65% for the IA Global sector*. The fund stands out for its focused approach and expert-driven investment in sustainable growth areas.
Two funds join the Elite Radar
The Elite Radar is a special badge for funds that may or may not have the minimum three-year track record to pass FundCalibre’s AlphaQuest quantitative screen, but are on the team’s watchlist and potential candidates for a full rating in the future.
New on the watchlist is Nutshell Growth. A high-conviction, concentrated fund that invests in exceptional growth companies with a unique quantitative approach. Manager Mark Ellis, whose successful trading background brings fresh ideas and pragmatism, uses a proprietary factor-based system, evaluating each holding using over 30 metrics. Unlike typical quality growth funds, it has a higher turnover of holdings, as the manager rebalances the fund every two weeks, demonstrating its innovative nature.This blend of adaptability and methodical strategy makes the fund particularly compelling. Its nimbleness and ability to swiftly reposition have impressed us, positioning it firmly on our radar.
The second fund joining the Elite Radar is the IFSL Wise Multi-Asset Income fund. This fund aims for income and long-term capital growth, targeting a 3% yield and currently offering a historical yield of 4.95%**. It invests across diverse asset classes such as equities, fixed income, infrastructure, property, and private equity, with a value-focused approach that seeks undervalued market areas. We like the team’s straightforward process and focus on managers with a simple, yet disciplined investment approach. This is an interesting alternative for those looking for an attractive income. The portfolio is high conviction and often uses investment trusts and alternative investments, giving investors a more diversified income stream.
Two funds move from Elite Rated to Radar
BlackRock Continental European Income — Lead manager Andreas Zoellinger will be retiring from the industry in the first quarter of 2025 and co-manager Brian Hall will take over management of the fund alongside Stuart Brown, who has joined from abrdn. Although we have every confidence in Brian, with the addition of a new named manager on the fund we’ve decided to move the fund to an Elite Radar until the team are able to demonstrate a three-year track record.
AXA Framlington American Growth — Lead manager Steve Kelly is leaving the firm in November 2024. Deputy manager David Shaw has worked alongside Steve since 2016 and will take over management of the fund. There will be no changes to the fund’s objectives or investment process. We are therefore happy to move it to an Elite Radar while David establishes his own track record on the fund.
Read more about what to consider when a fund has a change of manager
*Source: FE Analytics, total returns in pounds sterling, 13 September 2021 to 8 November 2024
**Source: fund factsheet, 31 October 2024
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.
