Morningstar's Manager Check Up

REAFFIRMED RATINGS: Morningstar's Jonathan Miller explains why analysts positively rate BlackRock Continental Europe, Fidelity Asia and Matthews Asia Pacific Tiger

Jonathan Miller 4 October, 2017 | 11:07AM
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Jonathan Miller: Welcome to the Morningstar Manager Check-up for the latest updates from our research team. The Bronze rated BlackRock Continental European Income fund, has been run by Alice Gaskell and Andreas Zoellinger since launch in 2011. The pairing have worked together on other European offerings for longer than this and we see them as a strong duo.

They work closely with the analyst team who generate ideas, with the duo emphasising dividend reliability through detailed fundamental analysis and control portfolio risks by creating a portfolio that is less sensitive to market movements. There’s a quality bias that looks for companies that can grow dividends, with a tilt to large caps and we also like the attractive risk profile, meaning the fund retains its Morningstar Analyst Rating of Bronze.

The Fidelity Asia fund is one we see as being in a safe pair of hands, under the stewardship of Teera Chanpongsang since 2014. His preferred investment is a firm trading below their intrinsic value and that he believes to have improving fundamentals the market hasn’t yet recognized in its underlying share price. There’s no stated style bias, although it leans towards ‘Growth at a Reasonable Price’. But he also keeps an eye out for value opportunities and turnaround stories.

At the moment he’s tapping into domestic demand, likes tech, but is avoiding Chinese banks. There’s a competitive fee in place, Chanpongsang has outperformed since taking on the fund, and we’ve re-affirmed the Morningstar Analyst Rating of Bronze.

The Silver Rated Matthews Asia Pacific Tiger fund, has seen Sharat Shroff at the helm for nearly a decade. Starting on a version of this fund being available to US investors, this mirror has been available here since 2010. The team is well-resourced and draws upon over 30 analysts.

Shroff looks to invest in companies with sustainable long-term growth prospects that have strong business models, quality management and are trading at reasonable valuations. He will invest across the market-cap spectrum and consider opportunities in the region's smaller markets.

The fund can look and act differently from its category peers and index, but we back the quality growth style to shine through over the long term, meaning the fund maintains a 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.

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About Author

Jonathan Miller  is Director of Manager Research, Morningstar UK