Morningstar's Manager Check Up

REAFFIRMED RATINGS: Morningstar's Pete Brunt explains why analysts positively rate Fidelity Global Specials Situations, Lindsell Train Japanses Equity and Aviva UK Equity

Peter Brunt 12 July, 2017 | 2:45PM
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Peter Brunt: Welcome to the Morningstar Manager Check-up, where we take a look at some of our recent fund updates. First up is Fidelity’s Global Special Situations fund, which is managed by the experienced Jeremy Podger. Backed by Fidelity’s vast analytical resources, he applies the same style-agnostic investment approach with which he has had so much success in the past, albeit within a framework that he introduced specifically for this strategy.

We are pleased to see that he continues to make highly effective use of both internal and external stock research. This is reflected in the fund’s attribution, which shows superior stock selection across most sectors since Podger’s arrival in 2012. Podger received our European Fund Manager of the Year award for global equities in recognition of his achievements on this fund and throughout his career. It retains a Morningstar Analyst rating of Silver.

Next, we look to the far east, in particular Japan, with the Lindsell Train Japanese Equity fund. We like this fund for its long-standing manager, Michael Lindsell, and his consistent application of what we find to be a clear and thoughtful investment approach. This is founded in the belief that a highly concentrated portfolio of high quality, cash-generative, strong and easily understood franchises will outperform the market and reduce volatility over the long term.

We believe that one of the fund’s main strengths lies in Lindsell’s deep understanding of company strategies, and his ability to see through the noise and buy and hold companies that are best placed to defend their business over the long term. Investors should note that the fund can exhibit periods of short term volatility, typically underperforming in strongly rising markets. It is our belief that investors who share the long-term time horizon will reap considerable rewards. The fund’s Morningstar Analyst Rating of Silver stands.

Finally, we look at bit closer to home with the Aviva Investors UK Equity fund. Chris Murphy has managed this core UK equities fund since 2006, using the same bottom-up investment approach that he has applied over most of his investment career. While Aviva’s UK equities team has seen some turnover over the last few years, it has experienced more stability over the last 12 months and remains adequately resourced. We believe that Murphy is a talented investor, whose genuinely long-term perspective has served investors well over the years. The fund retains a Morningstar Analyst Rating of Bronze.

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
Aviva Investors UK Lstd Eq Uncons2GBPAcc422.68 GBP0.00Rating
Fidelity Global Special Sits A Acc6,222.09 GBP0.37Rating
Lindsell Train Japanese Eq B Yen Acc239.86 JPY-0.59Rating

About Author

Peter Brunt  is a Senior Fund Analyst for Morningstar UK

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