Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week Morningstar analysts reveal a new rating for First State and an upgrade for T. Rowe Price

Morningstar Analysts 8 January, 2019 | 8:40AM

New Ratings

First State Japan Equity – Neutral

Ronald Van Genderen

We initiate coverage on First State Japan Equity with a Morningstar Analyst Rating of Neutral. This fund is managed by Sophia Li and Martin Lau. Day-to-day management of the fund lies in the hands of Li, who is a young and talented manager but still relatively short on portfolio management experience. She joined the firm in 2009 as an analyst and became portfolio manager in 2014.

She has worked alongside the experienced and highly rated Lau, and we value his experienced oversight. Support comes from three relatively unexperienced analysts all embedded in the broader 19-member First State Stewart Asia team.

The approach focuses on high-quality companies that deliver sustainable growth at attractive valuations through a robust bottom-up investment process. While the approach has been time-tested and consistently applied at various other funds, it still must prove itself evenly effective in the Japanese equity market, while at this fund it is executed by a less seasoned team.

Since inception in February 2015, the fund has outperformed its benchmark and the Japan flex-cap equity Morningstar Category average by a great distance. However, investors should duly note the fund’s elevated risk level.

Upgrades

T. Rowe Price US Large Cap Growth Equity – Silver

Mathieu Caquineau

T. Rowe Price US Large Cap Growth Equity’s Morningstar Analyst Rating has been upgraded to Silver from Bronze. Manager Taymour Tamaddon’s tenure only dates to January 2017, but he has settled in well at his first diversified charge. Tamaddon previously built a convincing track record on US-sold T. Rowe Price Health Sciences when its star manager and two analysts unexpectedly left.

He posted strong results from 2013-16 as that team was rebuilt. Here, he got up to speed quickly in areas outside his healthcare expertise. He has demonstrated a thoughtful, well-executed approach that draws on the depth of T. Rowe Price’s analyst team, as evidenced by a good security selection across a range of sectors.

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
First State Japan Equity I USD Acc13.41 USD-0.17
T. Rowe Price US Large Cap Gr Eq Q USD29.29 USD-0.33

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