Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: BlackRock Global Japan Small & Mid-cap Opportunities and Skagen Kon-Tiki

Morningstar Analysts 17 October, 2016 | 4:25PM
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New Coverage

BGF Japan Small & Mid-Cap Opps – Neutral

Don Yew

We have initiated coverage on BGF Japan Small and Mid Cap Opportunities with a Morningstar Analyst Rating of Neutral. This fund is managed by Tokyo-based Hiroki Takayama, who took over sole portfolio management responsibilities in October 2015 and is still building his track record on this fund. We have concerns around the high level of turnover within a compact Japan small- and mid-cap research team.

Furthermore, we think that the team is underresourced, as it relies on sell-side research for a considerable part of its investment process. The investment process has been in place since the fund’s inception in 1987 and aims to identify companies with earnings growth potential that has not been fully appreciated by the market. However, it has not added value for investors over the long term.

Under Review

Skagen Kon-Tiki – Under Review

Matias Mottola

Skagen announced on 12 October that Kristoffer Stensrud, the co-lead manager of the Skagen Kon-Tiki fund, has stepped down from this role and become a regular member of the portfolio management team. Knut Harald Nilsson, who came to Skagen in 2006 and has shared the lead manager role with Stensrud since 2014, will take sole responsibility for leading the team. Skagen also announced that Hilde Jenssen, who joined the Kon-Tiki team in September 2013, will be stepping down from portfolio management and becoming head of a new product specialist team at Skagen. She is not replaced, which will leave Kon-Tiki with four managers.

The Morningstar Analyst Rating for Skagen Kon-Tiki has been changed to Under Review to allow us to gather information regarding the changes and consider the effect of the changes on the fund.

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BGF Japan Small & MidCap Opps A211,036.42 JPY-0.10Rating
SKAGEN Kon-Tiki A1,259.63 NOK0.96Rating

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