Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: Fund analyst updates on Fidelity Global Dividend Fund, Invesco Perpetual Global Targeted Returns and three Kames funds

Morningstar Analysts 31 July, 2017 | 12:32AM
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New Ratings

Fidelity Funds - Global Dividend FundBronze

Jeffrey Schumacher

Fidelity Global Dividend is managed by Dan Roberts, who has 15 years of experience managing equity income mandates and has run this fund since its inception in 2012. Idea generation is primarily done by Roberts, leveraging on the broader resources available.

The fund’s process looks well-structured and is based on a sound philosophy focused on generating a dividend-based total return. Roberts prefers quality companies with a high level of dividend sustainability that can grow their dividends. He applies a long-term focus, as evidenced by the fund’s low turnover rate.

The portfolio is managed with conviction and well-balanced in terms of styles, sectors, and regions, as well as from a dividend perspective. Its track record is solid, beating both the global equity income Morningstar Category average and the MSCI World High Dividend Yield Index on a risk-adjusted basis. Security selection is key and the fund has added value for investors in downturns.  


Invesco Perpetual Global Targeted ReturnsNeutral

Randal Goldsmith

While we like the management team, we consider that it is dependent on broader resources to make this multi-strategy approach work. However, as part of our qualitative assessment our opinion is that the interaction across different teams is yet to be fully embedded.

Kames Equity Market NeutralNeutral

Kames Equity Market Neutral PlusNeutral

Kames UK Equity Absolute ReturnNeutral

Randal Goldsmith

These funds were previously rated Bronze, and the ratings were put Under Review following the announcement that David Griffiths will be leaving Kames. Griffiths had over 20 years’ investment experience, and had managed the Kames UK Equity Absolute Return strategy with David Pringle from its inception in February 2010.

Pringle remains at the firm, and continues to be supported by the rest of Kames’ UK equities team including Malcolm McPartlin, who has been co-manager since April 2015. However, the loss of Griffiths’ UK equity absolute return experience, and his input into the team’s research, which included the banks, lowers our conviction at these funds.

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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