18th August 2016 - Following a recent investment committee meeting, the directors of FundCalibre, Chelsea's sister company, have awarded six new funds an Elite Rating, bringing the total number of Elite Rated funds to 137.
Newly Elite Rated funds:
Aviva High Yield Bond
With a yield currently at 6%, this fund speaks to the income-hungry investor. Whilst high yield bonds carry more risk of default than higher quality bonds, the fund has not experienced a single default over the past three years, which is a testament to the manager's stock picking skill and focus on management teams. Aviva’s risk management software adds to our confidence in the fund’s ability to access this higher-risk end of the bond market in a controlled fashion.
Fidelity Global Dividend
This fund was added to the Chelsea Selection in March this year. It is a core global income fund that invests in transparent and sustainable businesses. It aims to pay a regular and growing income whilst preserving capital. We like that the manager challenges his analysts and allows for intellectual debate. The value influence means he is less likely to overpay for a stock, which can help to protect against price falls in down markets.
Mirabaud Equities Europe Ex UK Small & Mid Cap
Ken Nicholson has proved his worth at Standard Life and brings his experience and unique style to small-cap management to Mirabaud. His mantra is "you can't find the hidden champions by sitting at your desk looking at Bloomberg screens", so the team has an intensive and targeted road-trip programme to meet as many companies as they can. This is the key to their success, along with focus and discipline.
Standard Life Investments Global Equity Income
We like the fact that the team is not limited to investing just in higher yielding stocks, but also in those with future dividend potential. We also like the fund's flexibility of being able to drop into the bond market if they want to increase the income level at any time. The tried, tested and successful company-wide process, coupled with Kevin’s track record of consistently outperforming the sector, stands this fund in good stead.
Unicorn UK Smaller Companies
This is a small flexible fund with a solid investment process and a highly competent team of smaller companies specialists. Unicorn beat all other asset managers to top both the 2015 and 2016 FundCalibre Fund Management Equity Index and that was in part due to the excellent performance of this fund.
Wood Street Microcap
This a highly-concentrated, high conviction UK micro-cap fund, which was added to the Chelsea Selection in October 2015 and featured in the last edition of Viewpoint. It has been managed by Ken Wotton since its launch in 2009, with the support of the 40-strong specialist team at Livingbridge, who have been investing in this space for 20 years. They have experience of working with companies and management teams before they come to the stock market and this can give them an advantage over their peers.
Clive Hale, director of FundCalibre, said: “FundCalibre has just celebrated its second anniversary and pleasingly, feedback from investors has been very positive. Over the past year we have continued to broadened our search for Elite Rated funds, concentrating particularly on sectors where investors would like more choice. We have a number of development plans that will come to fruition in the second half of this year, including adding investment trusts to our range. Watch this space!”
Find out more about FundCalibre