New Ratings
Mid Wynd International – Bronze
David Holder
Investors in Mid Wynd International benefit from an experienced and close-knit team of three fund managers who work in a collegial environment and whose skills are well suited, in our view, to successfully execute the investment approach behind this proposition. All three managers have been involved in this strategy since 2011 through the similarly managed Artemis Global Select fund and have compiled a solid track record.
The process seeks to identify quality companies that are trading at attractive valuations and are poised to benefit from identified long-term secular growth trends. We also like the trust’s fee structure which is transparent and straightforward at 0.5% of net assets, which leads to a competitive ongoing charge of 0.75%. The managers’ experience wedded with a rigorous process make this fund a compelling offering within the global equity space.
Downgrades
Allianz Actions Euro Midcap – Bronze
Ronald van Genderen
In our view, below-par quality of execution of the strategy has led to disappointingly weak stock selection in the recent five years. This caused the fund to significantly underperform in four of the past five calendar years. Our conviction in the team managing this fund has been largely built on the presence of Frank Hansen. His team counts seven portfolio managers/analysts, as Heinrich Ey joined as co-head of the team in April 2016. His arrival is welcome, also with regard to long-term succession planning.
Nevertheless, although not imminent, the departure of Hansen would be a loss. The consistent bottom-up approach focuses on high-growth, high-quality stocks from the eurozone mid- and small-cap equity segment, and company analysis remains at the forefront. Although we maintain an above-average opinion on this team and process, we have lost part of our conviction.
Allianz Europe Small Cap Equity – Bronze
Ronald van Genderen
In our view, below-par quality of execution of the strategy has led to disappointingly weak stock selection in the recent five years. This caused the fund to significantly underperform in four of the past five calendar years. Our conviction in the team managing this fund has been largely built on the presence of Frank Hansen. His team counts seven portfolio managers/analysts, as Heinrich Ey joined as co-head of the team in April 2016. His arrival is welcome, also with regard to long-term succession planning.
Nevertheless, although not imminent, the departure of Hansen would be a loss. The consistent bottom-up approach focuses on high-growth, high-quality stocks from the European small-cap equity segment, and company analysis remains at the forefront. Although we maintain an above-average opinion on this team and process, we have lost part of our conviction.
Ratings Moved from Under Review
BGF Global Corporate Bond – Bronze
Carlos Lucar
We have reinstated BGF Global Corporate Bond’s Morningstar Analyst Rating of Bronze. Andreas Doerrenhaus replaced Owen Murfin as the lead manager of the fund in March 2017. The change was part of a consolidation of the unconstrained and benchmark-aware credit groups within BlackRock’s global bond team, with Doerrenhaus now leading the combined group. Doerrenhaus, who joined BlackRock in 2010 and has led the firm’s global unconstrained credit strategies in Europe since 2015, has been involved in running credit strategies for over a decade.
We believe his skills are beneficial here. Moreover, the 8-strong global bond team led by experienced investor and BlackRock veteran Scott Thiel, has been strengthened with addition of three credit specialists, over and above the two who supported Murfin in the day-to-day management of this fund. Thus, despite the change in leadership here, our concerns are alleviated by Doerrenhaus’ experience, continuity provided by members of the global bond team and BlackRock’s deep analytical resources at his disposal.
