Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week fund analysts reveal a new rating for HSBC, an upgrade for Fidelity and a downgrade for Macquarie

Morningstar Analysts 14 August, 2018 | 9:26AM
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New Ratings

HSBC GIF Asia Bond – Neutral

Don Yew

HSBC GIF Asia Bond’s day-to-day portfolio manager Gregory Suen has run this strategy via a Hong Kong unit trust since 1 April, 2011 and brings 18 years of investment experience, most of it dedicated to managing Asian credit portfolios. While he is an experienced credit investor, we would like to see him make use of his deep experience to better utilise the fund’s active risk budget.


Fidelity Germany – Silver

Barbara Claus

We have upgraded the Morningstar Analyst Rating of Fidelity Germany to Silver from Bronze because we think that the fund is a strong option for German equities. Although Christian von Engelbrechten's tenure of seven-and-a-half years is shorter than that of our other positively rated German equity funds, he has proved to be a passionate investor who has consistently demonstrated in-depth knowledge of his portfolio holdings.

We also have a positive view on Fidelity’s wider research resources, and we think that the firm is one of the better stewards of investors’ capital. High fees are the main weakness of this fund, but we think it can overcome this hurdle given its skilled manager, above-average research resources, and well-founded approach that provides von Engelbrechten with sufficient leeway to express his convictions.


Macquarie Asia New Stars – Neutral

Germaine Share

We have downgraded Macquarie Asia New Stars’ Morningstar Analyst Rating to Neutral from Bronze after having placed it Under Review. The fund’s Asian Listed Equities investment team has had a drastic overhaul, including the impending departure of Sam Le Cornu, long-term comanager of the fund and co-head of the team, effective 6 August, 2018. Another senior member, Duke Lo, will also be leaving, which will more than halve the team size compared with a year ago.

Founding member John Bugg remains on the team and will take over as lead manager and sole team head. While we appreciate that Bugg played a crucial part in the fund’s success, we consider the departure of Le Cornu a huge loss. Considering this along with other drastic team changes, we have downgraded the fund’s Morningstar Analyst Rating to Neutral.

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
Fidelity Germany Y-Acc-EUR30.44 EUR-0.06Rating

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