October's New Fund Launches

Eight new funds were launched last month. We also look some more established Morningstar rated alternatives

Annalisa Esposito 9 November, 2020 | 3:06PM
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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 SolutionsMillennials 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."

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk