01 Apr 2025
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
Here are the new rated funds from our March review:
The abrdn Enhanced Index funds bring together the benefits of both active and passive management in a low-cost proposition. They cover the core geographical regions that investors typically allocate to within the equity portion of their portfolios and are run by the well-resourced and highly experienced Quantitative Index Solutions team. The managers seek to add incremental excess active returns above each fund’s respective benchmark index through the enhancement of three factors; quality, momentum, and value. The funds are run using proprietary systems that leverage a deep and academically robust body of research. Risk is managed prudently so that the end client experience is consistent with the expected level of risk for the underlying index.
Click here to read the factsheet for the abrdn American Equity Enhanced Index
Click here to read the factsheet for the abrdn Asia Pacific Equity Enhanced Index
Click here to read the factsheet for the abrdn Emerging Markets Equity Enhanced Index
Click here to read the factsheet for the abrdn European Equity Enhanced Index
Click here to read the factsheet for the abrdn Japan Equity Enhanced Index
Click here to read the factsheet for the abrdn UK Equity Enhanced Index
Click here to read the factsheet for the abrdn World Equity Enhanced Index
RSMR rates the Artemis SmartGARP European Fund highly because of its well-established and disciplined investment process. The fund is managed by Phillip Wolstencroft, SmartGARP’s creator since 2001. The SmartGARP system is a powerful tool that sifts through thousands of companies, pinpointing those that are undervalued but have strong growth potential. It blends growth and quality factors with macroeconomic analysis, ensuring a balanced and strategic approach. The process is systematic and data-driven, reducing biases and helping the fund stay resilient in volatile markets.
A key strength of the fund is its focus on mid-cap stocks—an area often overlooked by its peers. This gives investors access to opportunities beyond the usual large-cap names. Plus, its value-biased approach avoids overpaying for growth, making it a strong choice for long-term investors. The strategy has been fine-tuned over time, adjusting the weighting on value stocks based on market conditions and incorporating more quality metrics for stability. These refinements reinforce an already proven approach, making the fund a solid option for those looking for diversification and strong potential returns.
Click here to read the factsheet for the Artemis SmartGARP European Equity Fund
This is an interesting proposition in the US small cap arena that provides investors with a core offering of the best ideas of the Fundamental Equity US Small Cap Equity Team, who are part of the wider Fundamental Equity Team within the depth of resource at Goldman Sachs. The portfolio managers are supported by the strength and depth of the team at GS covering small cap equities. As the fund can invest in a broad universe, having a deep team gives the managers a greater understanding of companies, and stocks are clearly allocated to each analyst who meet with management teams to establish relationships and good access.
Click here to read the factsheet for the Goldman Sachs US Small Cap Equity Portfolio
RSMR rates the Nomura Japan Strategic Value Fund highly because of its well-structured and disciplined approach to uncovering undervalued opportunities in Japan. Managed by an experienced team of four portfolio managers, supported by a deep research team, the fund takes a bottom-up, multi-cap, and unconstrained approach, ensuring it isn’t restricted by company, size or sector. The fund’s quality value strategy identifies stocks trading below their true worth, using a combination of financial screening and deep qualitative research. This ensures a well-rounded, diversified portfolio, reducing reliance on any single factor for returns. Unlike traditional value funds, this approach also considers intangible elements like business strength and competitive advantage, blending value with long-term growth potential.
RSMR appreciates the fund’s strong track record of sector-beating performance, despite some periods of volatility. While its returns can fluctuate, its ability to generate market-leading results over time makes it an attractive option for investors who can handle short-term ups and downs. Given its potential for strong, long-term gains, RSMR sees this fund as a good satellite holding, best used alongside passive or large-cap funds for diversification. It’s a differentiated strategy with the potential to add real value to a portfolio.
Click here to read the factsheet for the Nomura Japan Strategic Value Fund
The US Structured Research Strategy deviates from the pure play active management funds for which T Rowe Price are known, as it is an analyst driven portfolio based on the fundamental research platform. In essence, the fund isolates the bottom-up company specific knowledge within T Rowe Price. It is an active portfolio that maintains style, sector and industry exposure close to the S&P 500. Alpha is generated through the ability of the analysts to pick stocks which results in a portfolio that has the same feel as the S&P 500, but with the prospect of additional returns. Capital is allocated to analysts in proportion to the weight of the stocks they cover in the S&P 500 with off benchmark positions also permissible.
Click here to read the factsheet for the T. Rowe Price US Structured Research Equity
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This information is for UK Professional Advisers only and should not be given to retail clients.
The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.