Morningstar's Manager Check Up

REAFFIRMED RATINGS: Morningstar's Fatima Khizou explains why analysts positively rate First State Global Listed Infrastructure and Fidelity American Special Situations

Fatima Khizou 28 June, 2017 | 11:07AM
Facebook Twitter LinkedIn




Fatima Khizou: Welcome to the Morningstar Manager Check-up where we start with the First State Global Listed Infrastructure Fund. Lead manager Peter Meany has more than 20 years of experience in the infrastructure and utilities sector. And he is backed on this offering by co-manager Andrew Greenup. The team approach aims to deliver a combination of inflation-protected income and capital growth through a diversified portfolio of infrastructure stocks.

And the team actually has a broader view of the definition of this sector than many of their peers. And through a bottom-up analysis they look for a high-quality mispriced opportunity while being very mindful of macroeconomic, geopolitical and regulatory risks and their potential impact on the overall portfolio. The approach has resulted in excellent risk-adjusted returns over long and short periods and we have therefore reaffirmed the fund rating of Bronze.

Next is the Fidelity American Special Situations, which has been run by Angel Agudo since 2012. Agudo looks for undervalued companies where in his view there is stronger relative upside and limited downside potential. Typically, he will start with the worst-case scenario for each investment. He will look for sufficient downside protection and a margin of safety in the valuation and we think this is a key part in his portfolio management risk. Under Agudo's watch returns have been very strong on an absolute and relative basis and we have reaffirmed the fund's rating of Bronze.

Last but not least is the Worldwide Healthcare Investment Trust, which is managed by OrbiMed. Managers Samuel Isaly and Sven Borho bring a number of years of industry experience to the management of this fund. And they will look for companies with innovation, undervalued products in the pipeline, high-quality management and strong financials.

Like many of their peers in this sector, the fund is diversified across the healthcare spectrum with a combination of relatively defensive segments like medical devices and high-growth areas like small-cap biotech. 2016 has been a difficult year for this fund and many of their peers as healthcare funds have suffered from indiscriminate sell-off on the back of political rhetoric. However, the fund's long track records remain very strong and the fund benefits from long-tenured managers and a very disciplined investment approach. And we have therefore maintained the fund's Morningstar Analyst Rating of Silver.

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Fidelity American Special Sits W Acc2,131.14 GBP0.81Rating
First Sentier Glb Lstd Infra B GBP Acc337.07 GBP-0.03Rating
Worldwide Healthcare Ord3,416.29 GBP1.98Rating

About Author

Fatima Khizou  is an Investment Research Analyst for Morningstar