Eight new open-ended UK-domiciled funds launched, according to Morningstar Direct data. The number of new fund launches was a bit less than the one in September, when there were 11 new products created. Here we look through some of the newest funds and their more established alternatives:
Name | Inception | Morningstar Category |
ES Investec Wealth & Investment Balance | 05/10/2020 | GBP Moderately Adventurous Allocation |
ES Investec Wealth & Inv Cautious | 05/10/2020 | GBP Moderately Cautious Allocation |
ES Investec Wealth & Inv Growth | 05/10/2020 | GBP Adventurous Allocation |
ES Investec Wealth & Inv Income | 05/10/2020 | GBP Moderate Allocation |
TM RWC Global Equity Income | 14/10/2020 | Global Equity Income |
ASI Asia Pacific ex-Japan Tracker | 15/10/2020 | Asia-Pacific ex-Japan Equity |
AXA Global Strategic Bond | 19/10/2020 | Global Flexible Bond - GBP Hedged |
Regnan Global Equity Imp Solutions | 27/10/2020 | Other Equity |
Investec has been very busy in the month, launching four multi-asset funds, each of them has a different level of risk and equity-fixed income split. The one with the largest equity concentration, and so the riskier, is ES Investec Wealth & Investment Growth. While at the other side of the spectrum, as the name suggests, is ES Investec Wealth & Investment Cautions.
Meanwhile, RWC has launched a global equity income fund for Nick Clay, after poaching the veteran manager and his team from BNY Mellon. Clay used to run the BNY Mellon Global Equity Income and the new fund will have a similar mandate to this fund - where the manager built a strong track record over the past eight years. Indeed the fund has returned 10.9% a year over five years, according to Morningstar data.
The new RWC fund will invest in 40 to 60 companies, with a focus on quality, and will carry a 0.7% charge through the R share class. Gary Tuffield, RWC’s head of European sales, said: "With many companies currently aggressively slashing dividends to fund short-term cash flows, the need for a disciplined and proven process to identify quality companies that have the ability to not only generate, but sustain a reasonable level of dividend income, is needed now more than ever."
He adds: "Nick, Andrew, Robert and Colin, with over 90 years of combined industry experience, are recognised as one of the most experienced portfolio management teams in the industry and we believe they, via their process, can exploit opportunities that are beginning to arise."
Among the new entries are also ASI ASIA Pacific ex-Japan Tracker, which will track the MSCI AC Asia Pacific ex-Japan Index for a 0.17% ongoing charge; the AXA Global Strategic Bond which aims to achieve a mix of income and capital growth by investing in fixed income securities for a 0.5% ongoing charge; and impact fund Regnan Global Equity Impact Solutions. Millennials are the age group finding impact investing the most appealing.
Morningstar Rated Alternatives
For investors looking for more established alternatives, we have picked some funds which have already been rated by Morningstar analysts, meaning they already have a track record of at least three years.
In the UK Income Morningstar Category, Artemis Income and Franklin UK Equity Income are rated Silver and Gold respectively by Morningstar analysts.
Elsewhere, in the Asia Pacific ex-Japan Category is the Bronze-Rated iShares Pacific ex-Japan. Morningstar analyst Kenneth Lamont likes the the clean D share class of this tracker, with an ongoing charge of just 0.12%, is one of the cheapest offerings when compared with both active peers and other passive offerings.
He says: "Our conviction surrounding this fund is built around the broad market exposure offered and its ultralow fee structure. The structural tilt towards Australia and Korea means that its performance is susceptible to deviate from the category average, but we remain confident that over a full market cycle the fund is in good stead to outperform its peers on a risk-adjusted basis."