Two international fixed income funds, along with two others, have been given a ‘buy' rating in the latest rebalance of FE Investments' approved list of funds, while three were given a ‘sell' rating.

The model portfolios solutions provider added both the Capital Group Global High Income Opportunities and the Pimco Global Investment Grade Credit ESG funds from international fixed income sectors.

The list also saw the addition of the Montlake Mygale Event Driven UCITS fund from the alternative assets sector and the Premier Miton US Smaller Companies fund from the global equity sector.

Three funds were removed from the list, giving them a ‘sell' rating: The Artemis US Absolute Return fund from the alternative assets sector, the Lindsell Train Japanese Equity fund from the global equities sector and Jupiter's UK Mid Cap fund from the UK equity sector.

FE analytics attributed the decision to "deteriorating performance and changing market conditions".

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Charles Younes, research manager at FE Investments, said: "We have been impressed by Capital Group Global High Income Opportunities as its investments are equally split between high yield corporate bonds and emerging market debt. With interest rates possibly rising throughout 2022, this presents an opportunity for bond investors looking to generate a high level of income.

"The two strategies are run by different management teams and the fund has produced a yield in excess of 5% since 2016, with particularly strong returns from Emerging Market government debt.

"The Pimco Global Investment Grade Credit ESG fund meanwhile takes a diversified approach to investing in investment grade corporate bonds by spreading investment across a regions, sectors and issuers. The fund has demonstrated high-quality credit selection with a very low default rate.

"It benefits from a well-established and robust environmental, social and governance (ESG) investment process that contributes to the construction of a high-quality portfolio. The manager also has a very effective engagement process with issuers."