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Top Rated Global Fund You've Never Heard Of

Analyst Pete Brunt details a new fund under Morningstar coverage and reveals why it has earned a Silver Rating

Emma Wall 14 September, 2017 | 11:03AM

 

Emma Wall: Hello, and welcome to the Morningstar series, "Ask the Expert." I'm Emma Wall and I'm joined today by Morningstar Fund Analyst, Pete Brunt.

Hello, Pete.

Peter Brunt: Good morning, Emma.

Wall: So, we are here today to talk about a new fund that's just come under Morningstar analysts and you've awarded it a Silver rating, haven't you?

Brunt: Yeah, that's right, yeah. So, it's the Artisan Global Value Fund, which is not so well-known in the U.K. It's managed by a couple of guys out of America. The fund is $1.7 billion at the moment, but actually they manage $17 billion in total including their U.S. mutual funds. So, this Irish-domiciled vehicle has been – they have been managing that since 2011.

But actually, they have a much longer track record. It goes back to about 2007 on the global mandate. They have been managing an EAFE mandate, which is global ex-U.S., since 2002. And their experience dates back to the late '90s when they were working at Harris Associates, which is a very well-established investment house in America.

Wall: And I suppose that's a really interesting point because it would be rare, well at least in my experience, to award a Silver rating to a fund that we've never even heard of and it's because they have that track record outside of the U.K. running a very similar mandate that you are awarding them this Silver Rating?

Brunt: Exactly. So, this is really bringing the Irish-domiciled fund in line with our view in America on the U.S. mutual funds. So, we are piggybacking of our analysts in America. And so, yes, it's unusual, but in this case, we already know the investors very well.

Wall: And what do you like about it, because track record isn't enough to deserve a Silver rating?

Brunt: That's true. So, these guys, obviously, as you mentioned, very experienced. They have been doing it for a long time. They have good resource. They have got six pretty experienced analysts with them. They have a very well-structured process that we value highly. What's interesting about the fund is that there has been a lot of talking; you and I have talked about quality growth in the market.

This has got a value tilt. So, they are still trying to identify companies that have very little debt and that have a higher return on capital, but they are looking more into the value space. And you are not going to find this fund full of consumer staples. Currently, it's overweight financials; it's got an overweight to IT as well. But it has a very different profile to some of the funds that we've discussed in the past.

So, for those that are looking for a global equity fund with a more value tilt but still has the quality aspect, we think this is a good example.

Wall: And what about price, because that's the other one of those Ps that we do rate here at Morningstar?

Brunt: A fair question. So, this fund is actually – we would consider it a little bit more expensive than peers. So, that's something to bear in mind. But overall, you are right, one of five pillars that we consider and we consider the other four to be of good strength to sort of give that enough for us to still have a positive Silver rating.

Wall: Pete, thank you very much.

Brunt: You're welcome.

Wall: This is Emma Wall for Morningstar. Thank you for watching.

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.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Artisan Global Value I USD Acc20.62 USD0.29
About Author Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk