05 Mar 2024
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 RSMR rated funds from our February review:
Macquarie is a large global infrastructure manager with an unparalleled insight into local markets, government policy, competition, risks and opportunities. The fund only invests in ’pure’ listed infrastructure companies that own and operate physical infrastructure assets such as toll roads, airports, electricity and gas utilities, water companies and energy pipelines. It does not own infrastructure support or service companies such as construction or airplane servicing companies, as these do not own and operate the physical infrastructure assets.
The fund can act as a diversifier in portfolios and should, over time, be capable of reducing volatility, due primarily to its relative resilience in falling markets. The long-term nature of the income streams of the fund’s underlying investments makes it suitable as a strategic holding within portfolios and it is useful as an ‘alternative’ asset or potentially as a substitute for a conventional equity fund in a lower risk portfolio.
The scale and extent of Macquarie’s activity within the global infrastructure sector means their access to on the ground feedback and information is excellent. The focus on pure infrastructure plays and the avoidance of ‘satellite infrastructure-linked’ activity brings a set of characteristics useful in portfolio construction. The management team is well established, experienced and knowledgeable and capable of applying historic perspectives to markets and economic conditions. We view this as a very ‘clean’ play on the infrastructure sector and one that is less prone to short term fluctuations in market sentiment.
(Added to the RSMR rated Rathbone Multi-Asset Fund Range)
The Rathbone multi-asset funds have been an RSMR rated fund range since May 2017. The funds aim to achieve capital growth, with specific growth and volatility targets that increase through the range. They contain a mixture of passive and active investments through direct and collective holdings. The products are well diversified, investing in traditional long-only equity and fixed income, but also harness alternative investments in a blend of strategies including hedge funds, commodities, private equity and structured products.
The funds are run by an experienced team that seeks to match a risk and return budget for each portfolio over the life cycle of the investor. Close attention is paid to the risks within the portfolios and their liquidity, and the correlation of assets held in the underlying funds. The managers have a diverse range of assets in the portfolios and are prepared to use these with conviction. They offer a true multi-asset alternative and do not have a geographically managed approach, typical of many in their peer group, allowing them to focus on the objectives of the funds and provide truly differentiated alternatives.
There were originally four funds in the range rated by RSMR. However, Rathbones subsequently launched two additional funds, the Rathbone Defensive Growth Portfolio and the Rathbone Dynamic Growth Portfolio, as a complement to its existing range of multi-asset funds. Both funds are designed to complement the group’s existing range, adding additional risk options. They are managed by the same team and to the same investment process as the existing funds in the range and in terms of stock selection, have high commonality. It is clear that the Defensive Growth and Dynamic Growth portfolios are a natural extension of the existing multi-asset range and, therefore, RSMR made the decision to add both of these funds to the RSMR rated Rathbones Multi-Asset Fund range.
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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.