Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week Morningstar analysts reveal new ratings for BlackRock and Royal London, and a downgrade for BGF

Morningstar Analysts 24 April, 2019 | 9:09AM

New Ratings

BlackRock Global Event Driven – Bronze

Francesco Paganelli

We have initiated coverage of BlackRock Global Event Driven with a Morningstar Analyst Rating of Bronze. The strategy benefits from the vast technological and quantitative resources at BlackRock to support the experienced team of managers led by Mark McKenna, who has invested in corporate events for nearly two decades. The managers apply a rigorous, multifaceted process and invest in ideas across the corporate-action spectrum. The fund does not come cheap, and this element limits our conviction. All in all, however, we view this strategy as a solid option in the event-driven space.

Royal London Sustainable World – Bronze

Royal London Sustainable Diversified – Bronze

Royal London Sustainable Managed Growth – Bronze

Rajesh Yadav

We have initiated coverage on three multi-asset strategies within the Royal London Sustainable range – World, Diversified, and Managed Growth – with Morningstar Analyst Ratings of Bronze. They are managed by one of the most experienced and well-respected teams within the sustainable space in the UK. The team begins with positive screening of companies that deliver a net benefit to society in terms of the products and services they provide or that show leadership in environmental, social, and governance management. The managers have built a respectable track record across all strategies and are top-quartile-performing strategies in their respective categories. Depending on risk appetite, we think all three strategies are solid choices for investors looking to invest in a sustainable space.

Downgrades 

BGF Global Allocation – Bronze

Barbara Claus

We have downgraded the Morningstar Analyst Rating of BGF Global Allocation to Bronze from Silver. This decision was taken following multiple changes in the fund’s management team over the last two years, including the retirement of Dennis Stattmann in 2017; the recently announced retirement of Dan Chamby in 2020; and Kent Hogshire, who was absent since 2018, leaving the firm. Rick Rieder, the firm’s fixed-income CIO, has taken over the lead of BlackRock’s global allocation investment team and became comanager on the strategy alongside Dan Chamby, Russ Koesterich, and David Clayton. That said, BGF Global Allocation still benefits from an established process, but changes at the strategy’s helm reduce its appeal. 

 

 

 

 

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
BGF Global Allocation D2 USD63.60 USD0.64
BSF Global Event Driven D2 USD119.92 USD0.44
Royal London Sustainable Div C Acc187.40 GBP0.05
Royal London Sustainable Mgd Gr C Acc156.00 GBP0.06
Royal London Sustainable World C Acc245.40 GBP-0.16

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