By Leo Bland Standard & Poor's Fund Research has given three managed funds an frAAA rating in its fi...
By Leo Bland
Standard & Poor's Fund Research has given three managed funds an frAAA rating in its first report dedicated to the sector.
It has upgraded the Royal & SunAlliance Portfolio fund to frAAA from frAA and the ratings agency has also given frAAA rating to the Newton Managed fund, which previously had frAA rating.
Royal & SunAlliance Portfolio is ninth out of 35 funds in the Active Managed sector over three years on growth of 53%. The fund is ranked 29 out of 45 over one year on growth of 14.8% and is 21 out of 50 over three months on growth of 7.9%.
Newton Managed is fourth out of 35 over three years in the Active Managed sector on growth of 59.4%. Over one year it is 16 out of 45 on growth of 17.7% and is 27 out of 50 over three months on growth of 6.6%.
The previously unrated Deutsche Managed Portfolio Trust has also been given an frAAA rating.
The fund is ranked 16 out of 48 over three years in the Balanced Managed sector on growth of 45.5% and is 28 out of 55 over one year on growth of 13.3%. Over three months the fund is 26 out of 64 on growth of 6.6%.
The upgrades come in Standard & Poor's Fund Research's report on the managed fund sector covering 45 funds. Of these, 24 were given frAA ratings and the remainder achieved frA status.
James Tew, director of research at Standard & Poor's Fund Research, said: "In this, our first review of managed funds as a distinct sector, we have closely followed the recently issued Autif classifications but have applied them to a wider universe, including Luxembourg-domiciled and other offshore funds.
"Our qualification screen is identical to that for all other sectors, namely the inclusion of the top 15% to 20% of funds on the basis of their consistency of performance over three separate performance measurement years. Our rating process is also the same, that is the application of 60% qualitative and 40% quantitative."
Stephen Porter, research analyst for managed funds at the group, said: "Investors in the sector have three choices. They can opt for funds investing solely in an in-house range, funds investing in third party funds or those investing directly in bonds and equities. Adequate group resources are essential. In the case of third party funds of funds, there are well over 3,000 funds now available to UK investors. Any fund manager covering such a universe has to devote considerable time and resources to screening and portfolio monitoring."
Funds which have been given an frAA rating include Baring Portfolio, Britannia Managed Portfolio and Mercury Balanced Portfolio.
Also given an frAA rating are managed funds such as the INVESCO GT Managed fund, Newton Bridge and Schroder Strategic. Funds given an frA rating include the Cazenove Portfolio fund, Framlington Managed Distribution fund and M&G Managed Growth fund. Other frA rated funds include Martin Currie Income Portfolio, Standard Life Managed and Stewart Ivory Managed Equity.
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