Analysts Downgrade Axa Fram UK Select Opportunities

Morningstar analysts have downgraded Axa Framlington UK Select Opportunities from a Gold to a Silver rating

Simon Dorricott 9 January, 2018 | 11:00AM
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Simon Dorricott: I’m here today to talk about the Morningstar Analyst Rating change to the Axa Framlington UK Select Opportunities Fund which we have reduced from a Gold to a Silver rating.

With all our qualitative ratings, we continually assess the merits of each fund relative to its peer group. For a Gold rating we need to be absolutely certain that a product is better than almost all of its peers, and in this case, a few question marks have appeared that have reduced our level of conviction at the margin.

Specifically, we don’t feel the support team and structure of the process are significantly above some of our other highly rated funds, and there have been some question marks over recent decisions that have led to the lacklustre medium-term returns.

That said, we continue to see significant positives. The fund is managed by Nigel Thomas and we value his high level of experience in UK equities - which amounts to over 30 years - and the insights this provides.

Since taking over the fund in 2002 Thomas has demonstrated performance success against both the FTSE All-Share Index and peers. And, by awarding the fund a Silver rating we continue to express the view that, over the longer term, the fund has the potential to outperform both comparators.

So, in summary, holders of the fund should not be overly concerned about this rating change.

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
AXA Framlington UK Select Opps ZI Acc186.50 GBP-0.27Rating

About Author

Simon Dorricott  is a Senior Fund Analyst for Morningstar

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