FundCalibre announce new Elite Rated funds

Following the second quarterly investment committee meeting, FundCalibre have awarded an Elite Rating to a range of funds. The addition will take the number of Elite Rated funds to 126.

Baillie Gifford Corporate Bond*
With this fund the managers stick to what they do best, which is picking stocks. Whilst this may seem simplistic, the in-depth research the managers carry out to find ideas is anything but. Trying to second guess central bankers and forecast interest rates has been the undoing of many fixed income managers. This is an effective and philosophically pure investment strategy that has been very successfully implemented by a high-quality investment team.

Baillie Gifford High Yield*
The managers believe that the most consistent way to deliver outperformance in this segment of the fixed income market is to pick the right stocks. We think that this is well justified, as the fund has delivered excellent relative performance for a number of years. The investment process is remarkably straightforward and has been well executed by a small but highly competent and stable team.

F&C Real Estate Securities*
The size and strength of the team mark out this fund versus some of its competitors.  The unique way the managers use the full range of tools available to them, namely by shorting unfavoured stocks, enables the managers to express a wider range of views and better manage risk. This is a big positive given the small size of their investment universe. Put into practice, this translates into consistent outperformance and favourable risk/return characteristics.

JP Morgan Multi Asset Income**
This fund takes advantage of JP Morgan's vast expertise to derive its income from a wide range of global asset classes. Michael Schoenhaut and Talib Sheikh are both highly experienced and make excellent use of JPM's macroeconomic research in their asset allocation decision making. Thus far, the fund's performance has been excellent and there are few, if any, other funds that can offer the same level of scope and expertise. The team are highly regarded and run billions of dollars globally.

Legg Mason Clearbridge US Aggressive Growth*
Running a concentrated portfolio with very little turnover requires a confidence that only comes with managers who have a deep understanding of their portfolio companies and their competitors. The size and strength of the US-based team provide the platform for this to happen.

We believe the long-term, high-conviction approach, combined with the size and strength of the investment team, make this a compelling option for investors who are looking for US equity exposure but are aware of the risks associated with the product.

Premier Pan European Property*
Alex Ross' propriety screening tool, which he has developed over many years and is tailored specifically to the sector, is an investment tool that other managers will find hard to replicate. The investment process of quality first, then value, is disciplined and been proven to work over time. His focus on identifying mid-cap stocks that can outperform has also delivered alpha for the fund. In short, this is a high conviction investment strategy that has been well executed by an experienced manager.

Somerset Emerging Markets Dividend Growth**
This is an emerging markets equity income & growth fund run by a team that has been together for 15 years, with a good track record. This fund is predominately a large-cap fund, but with high active share.

Since its launch at the end of July last year the initial feedback from both investors and advisers has been very positive on FundCalibre. There have been profound changes in regulation and investor behaviour patterns. In this new landscape, we believe that FundCalibre and the Elite Rating seal now provide an invaluable research tool for both investors and advisers seeking independent validation in their investment choices.

With this in mind, FundCalibre have continued to broaden their search for Elite Rated funds over the past few months, concentrating particularly on sectors where investors would like more choice: for example, good emerging market equity funds that are actually open to new investors, as well as funds investing in property and high yield.

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We will be looking at how you can buy using the Chelsea website in the next article, so why not give it a go.

* These funds are available to buy through Chelsea and are a “buy”.
** These funds are available to buy through Chelsea but are not yet rated.