Cobas Internacional, DWS Deutschland join highest rated on SharingAlpha platform

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The latest monthly update of highly rated funds on the SharingAlpha platform has highlighted the Cobas Internacional and the DWS Deutschland funds among those most highly rated by SharingAlpha’s platform users constituting professional fund selectors across Europe and beyond.

Cobas now has two funds in the top 10 – the other being its Selección fund which has moved up on its position the previous month. Others making gains include the Magallanes European Equity, Vanguard US Opportunities and Schroder GAIA Two Sigma Diversified funds.

The funds are rated on the key factors of people, price and portfolio. The scores represent the ‘wisdom of the crowd’, as they are based more on qualitatively derived expectations of fund selectors rather than backward looking quantitative filtering.

Highly rated funds

Fund Domicile Average Rating Raters Position
Liontrust European Income Fund United Kingdom 5 7 same
Oppenheimer Developing Markets Fund United States 4.92 5 same
Invesco Global Leisure Fund Luxembourg 4.91 6 same
Cobas Internacional FI Spain 4.87 5 new
Magallanes European Equity FI Spain 4.82 20 up
Vanguard US Opportunities Fund Ireland 4.81 6 up
Sextant PEA France 4.81 15 same
Cobas Selección FI Spain 4.8 8 up
Schroder GAIA Two Sigma Diversified Luxembourg 4.79 15 up
DWS Deutschland Germany 4.78 6 new

From the scores attributed to individual funds by fund selectors, SharingAlpha can compare the performance of those funds against equivalent ETFs, to gauge the alpha generation attributable to the skill of the selector. The closer the performance of the fund to the expectation of the selector, the higher the score of the selector. This is called a ‘Hit Score’ by SharingAlpha, which can then be compared between peers to identify groups of selectors who consistently do well, exhibiting selection skills.

The platform also enables fund selectors to run funds of funds, to establish asset allocation rankings. Again, this facilitates the generation of a track record of measurable skill on the part of the selector.

The data generated by platform users also enables SharingAlpha to provide updated rankings of providers, popular funds, popular categories, highly rated funds by category, and highly rated hedge funds. The ratings are provided on the basis of data available to the end of June 2018.

Highly rated providers

Provider Funds Rated Number of Ratings Average Rating Position
Fundsmith 3 66 4.56 same
Robeco 25 80 4.5 same
Deutsche 30 72 4.44 up
MainFirst 9 62 4.44 down
Schroders 41 151 4.37 up
Liontrust 7 123 4.37 down
M&G 23 131 4.33 same
GAM 28 126 4.32 same
Legg Mason 13 56 4.31 same
Pimco 36 82 4.28 same

Most popular funds

Fund Domicile Fund of Fund Count Position
Fundsmith Equity United Kingdom 25 same
Old Mutual Global Equity Absolute Ret Fd Ireland 20 same
M&G Optimal Income Fund United Kingdom 17 up
Magallanes European Equity FI Spain 15 up
BSF European Opportunities Extension Fd Luxembourg 14 up
Nordea 1 – Stable Return Fund Luxembourg 14 down
JPM Global Macro Opportunities Fund Luxembourg 13 new
Hermes Global Emerging Mkts Ireland 12 up
Morgan Stanley INVF Global Opportunity Fund Luxembourg 12 new
Allianz Europe Equity Growth Luxembourg 11 down

Popular categories

Category Score Allocation Score Position
Europe Equity Mid/Small Cap 100 100 same
Market Neutral 48 57 same
UK Equity Mid/Small Cap 58 45 same
Africa Fixed Income 35 44 same
Africa Equity 52 8 same
Europe Equity Large Cap 39 18 same
Precious Metals Sector Equity 38 15 same
Currency 36 16 same
Technology Sector Equity 30 23 up
Asia ex-Japan Equity 28 21 down

Highly rated funds by category

Category Fund Provider
Aggressive Allocation MFS Meridian Prudent Wealth Fund MFS
Allocation BlackRock Global Allocation Fund Blackrock
Asia ex-Japan Equity Schroder ISF Asian Opportunities Schroders
Asia Fixed Income Matthews Asia Fds Asia Credit Opps Matthews Asia
Asia Equity Fidelity Pacific Fund Fidelity
Cautious Allocation Invesco Pan European High Income Fund Invesco
Greater China Equity Janus Henderson China Opportunities Fund Janus Henderson
Commodities Broad Basket Vontobel Dynamic Commodity Vontobel
Consumer Goods & Services Sector Equity Invesco Global Leisure Fund Invesco
Convertibles UBS (Lux) IF Global Convertible Bonds UBS
Currency First Trust FactorFX ETF First Trust
Emerging Markets Equity Oppenheimer Developing Markets Fund Oppenheimer
Emerging Markets Fixed Income BGF Emerging Markets Bond Fund Blackrock
Energy Sector Equity First Trust North Amer Engy InfrasFund First Trust
Europe Equity Large Cap Liontrust European Income Fund Liontrust
Europe Equity Mid/Small Cap Magallanes European Equity FI Magallanes
Euro Fixed Income La Francaise LUX Multistratégies Obligataires La Francaise
Euro Money Market BNP Paribas Money 3M BNP Paribas
Flexible Allocation Belgravia Épsilon FI Belgravia
Global Equity Large Cap Fundsmith Equity Fund Feeder Fundsmith
Global Equity Mid/Small Cap True Value FI Renta 4 Gestora
Global Equity Eurizon Sustainable Global Equity Eurizon Capital
Global Fixed Income PIMCO GIS Global Bond Fund Pimco
Market Neutral Pictet TR – Agora Pictet
Long/Short Equity Charlemagne OAKS Emerging and Frontier Opp Fund Fiera
High Yield Fixed Income Nordea 1 – European High Yield Bd Fd II Nordea
India Equity Kotak India Midcap Fund Kotak
Industrials Sector Equity RobecoSAM Smart Materials Fund Robeco
Inflation Linked Sanlam Multi Mgd Inflation Lnkd Bond Sanlam
Japan Equity Janus Henderson Horizon Jpn Smr Coms Fd Janus Henderson
Miscellaneous Eaton Vance Global High Yield Bond Fund Eaton Vance
Moderate Allocation Acatis – Gané Value Event Fonds UI Acatis
Multialternative Schroder GAIA Two Sigma Diversified Schroders
Other Alternative Candriam Bds Credit Opportunities Candriam
Other Europe Equity Sextant PEA Amiral Gestion
Other Fixed Income GAM Star MBS Total Return GAM
Precious Metals Sector Equity BGF World Gold Fund Blackrock
Property-Direct Schroder UK Real Estate Fund Schroders
Other Sector Equity RobecoSAM Sustainable Water Fund Robeco
Real Estate Sector Equity Schroder Global Cities Real Estate Fund Schroders
Natural Resources Sector Equity Investec GSF Global Natural Resources Fd Investec
Technology Sector Equity DNB Fund Technology DNB
Sterling Fixed Income GAM Star Credit Opportunities (GBP) GAM
UK Equity Large Cap Jupiter UK Special Situations Fund Jupiter
UK Equity Mid/Small Cap Liontrust Special Situations Fund Liontrust
US Fixed Income GAM Star Credit Opportunities (USD) GAM
US Equity Large Cap Blend Ossiam Shiller Bcly Cape US Sect Val TR Natixis
US Equity Large Cap Growth MS INVF US Growth Fund Morgan Stanley
US Equity Large Cap Value Robeco BP US Premium Equities Robeco
US Equity Mid Cap Vanguard US Opportunities Fund Vanguard
US Equity Small Cap Nuveen NWQ Small-Cap Value Fund Nuveen
Africa Equity Marriott Dividend Growth Marriott
Africa Fixed Income STANLIB Aggressive Income STANLIB

Highly rated hedge funds

Fund Domicile Average Rating Raters Position
Liontrust European Income Fund United Kingdom 5 7 same
Oppenheimer Developing Markets Fund United States 4.92 5 same
Invesco Global Leisure Fund Luxembourg 4.91 6 same
Cobas Internacional FI Spain 4.87 5 new
Magallanes European Equity FI Spain 4.82 20 up
Vanguard US Opportunities Fund Ireland 4.81 6 up
Sextant PEA France 4.81 15 same
Cobas Selección FI Spain 4.8 8 up
Schroder GAIA Two Sigma Diversified Luxembourg 4.79 15 up
DWS Deutschland Germany 4.78 6 new

Fund selector comments

Users of the SharingAlpha platform have also provided comments on certain of the funds rated over the past month.

Alexandre de Mahieu senior investment advisor at Vellut, Namèche & Associés said: of the Nuveen NWQ Small-Cap Value fund: “Good performance this year YTD. But globally sometimes underperforming, sometimes overperforming. Globally an average performance & risk.”

Gaurav Sharma, independent research analyst, commented on the Kotak India Midcap fund that: “After the recent reclassification exercise by the SEBI, this fund is renamed as Kotak Small Cap fund. My insights: 1) NAV has fallen by around 12% in 2018-to date; 2) More than 50% allocation in cyclical sectors include over-allocation in basic materials and under-allocation in financial services compared to both category averages and benchmark; 3) The manager is looking to generate alpha through basic materials, industrials and information technology stocks; 4) Around 14% of holdings are still in large cap stocks – a little bit of style drift (could be used as a cushion to the recent fall in SMID caps); 5) High expense ratio – starting from 2.3%; 6) <40% turnover is good; 7) New investments in consumer based themes – retail, clothing – good sign; 8) The fund has not been able to fully capture the upside in the markets; 9) Solid management and investment team. All-in-all an above average fund, which can be a part of moderately high risk investor.

Ignacio Martín Ocaña senior portfolio manager at Alpha Plus Gestora, said of the MS INVF US Growth fund  the he considers it “best in class US large cap growth fund with a growing and consistent alpha generation (+400 pbs accumulated in last 3 years).”

“1.2x beta is in line with the growth investment approach combined with an 8.7% tracking error against (>80% active share vs Russell 1000 Growth index), which is not exactly right as the fund is focused on large caps. 80% of the portfolio concentrated on sectors like IT (40%) consumer (20%) and healthcare (20%) in a concentrated portfolio of just 35 holdings (+20% median five-year EPS growth and +18% sales growth)….companies like Amazon, Starbucks, Alphabet, Illumina and Twitter.”

Yuli Petreikov, senior portfolio manager at Pioneer Wealth Management, notes that the GAM Star Credit Opportunities (USD) is “an exceptional fund.”

“There are no passive instruments to get exposure to junior debt of investment grade companies. Because of the high coupon (of 5%-6%) the fund is affected less by the rising yield.”

Carla Veiga, senior fund manager at GNBGA, said of the Invesco Pan European High Income fund: “Excellent fund in terms of performance and investment process.2

Jorge Martret, director of management at Talenta Gestión, said of the BSF Fixed Income Strategies fund that it is a “must be” in a conservative portfolio.

Jose Reinosa, investment advisor at Julius Baer, said of the Nordea 1 – Stable Return fund: “Value style fund with a bias to mid-caps, managed by a highly skilled team who holds a concentrated portfolio on high conviction stocks. Track record is still short but it shows a great performance since launch with a good risk management.”

Carlos Prado Conde, analyst at Sássola Partners, said of the MFS Meridian Prudent Wealth fund: “Portfolio manager with a very conservative point of view. High levels of cash and UST-Bills in one hand and in the other a very conservative equity portfolio overweight in consumer staples and technology.”

Beatriz Hernández Ribes, funds analyst at atl Capital, said of the Robeco BP Global Premium Equities fund that: “The fund’s index is very difficult to beat due to the risk-return efficiency. Despite this handicap, Robeco Global Premium has been able to outperform the market in many opportunities. It has one of the best quantitative and qualitative ratings from Morningstar using a value approach. From atl Capital we would highly recommend this fund to cover global markets within a diversified portfolio.”