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Analysts Downgrade UK Smaller Companies Trust

INVESTMENT TRUST RESEARCH UPDATE: Morningstar analysts have cut their rating on Montanaro UK Smaller Companies to Bronze

Jackie Beard, FCSI 31 July, 2014 | 9:58AM

We have downgraded the Montanaro UK Smaller Companies Trust (MTU) to a Morningstar Analyst Rating™ of Bronze. Previously the fund held a Silver rating. We acknowledge this is a team-driven process; nonetheless, there has been a series of changes to the lead manager over a relatively short span of time. Anna Lunden takes full charge on 1 October 2014, and she brings decent experience in European small-cap investing—and in the UK to a lesser extent.

We retain conviction in the team and their process, and we think Lunden is the right person to take charge here, but we believe the process has more of an edge in Europe than in the UK, particularly when compared with its peers. We believe a Bronze rating is a better reflection of our conviction.

Find out more about how Morningstar analysts rate funds and investment trusts here.

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
Montanaro UK Smaller Companies Ord129.81 GBX1.02

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

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