Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Further fund rating changes – the alternatives asset class

In addition to our recent fund downgrades, we have changed the ratings of a further seven funds, this time from the alternatives asset class. Our intention is to bring greater focus to the funds available through us and place emphasis on our high conviction ideas.

Tom White Tom White
29 November 2016

Below, you can see which funds from the asset class we have downgraded – each has a one-star ‘switch’ rating, to reflect the withdrawal of future coverage. This means that you could consider switching into our ideas that we have higher conviction in.

Targeted Absolute Return

Our higher conviction funds in this sector are Threadneedle UK Absolute Alpha or Invesco Perpetual Global Targeted Returns.

Artemis Strategic Assets – 2 stars to 1 star

FP Argonaut Absolute Return – 3 stars to 1 star

JPM Global Merger Arbitrage – 3 stars to 1 star

MLIS York Event Driven – 3 stars to 1 star

Multi-asset funds

The Trojan Fund is our preferred fund for multi-asset exposure, or you could consider a combination of a highly rated bond fund and a highly rated UK equity fund.

Invesco Perpetual Distribution – 3 stars to 1 star


Our house view on commodities focuses on gold, which has a low correlation to other classes and has the potential to give a degree of protection against a shock to the market. You can read our views on gold here.

JPM Natural Resources – 2 stars to 1 star


Our preferred option is a general property fund such as Aberdeen UK Property or Henderson UK Property.

TM Hearthstone UK Residential – 3 stars to 1 star

If you have any questions about your investments, please call us on 020 7189 2400 or email us at A member of our team would be happy to help.



The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This article does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. Past performance is not a guide to future performance. Targeted Absolute Return funds do not guarantee a positive return and you could get back less than you invested, as with any other investment. Additionally, the underlying assets of these funds generally use complex hedging techniques through the use of derivative products, which can carry additional risks which may not be immediately apparent. The property market can be illiquid; consequently, there can be times when investors will be unable to sell their holdings. Property valuations are subjective and a matter of judgement. Funds which invest in specific sectors may carry more risk than those spread across a number of different sectors. In particular, gold, technology and other focused funds can suffer as the underlying stocks can be more volatile and less liquid.