Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week fund analysts reveal a new rating for Invesco and a re-rating for NN

Morningstar Analysts 3 September, 2018 | 3:11PM
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New Ratings

Invesco Global Investment Grade Corporate Bond – Bronze

Irene Ruiz Espejo

We are initiating coverage of Invesco Global Investment Grade Corporate Bond fund with a Morningstar Analyst Rating of Bronze. Lyndon Man has been the lead manager here since August 2013, along with co-manager Luke Greenwood. They are part of the 12-strong global investment-grade team and they are further supported by an extensive analyst pool, including 15 dedicated investment-grade analysts. The fund stands out from the crowd in the way the managers combine the three pillars of the process: long-term thematics, relative value against the benchmark, and a macro overlay to help manage liquidity and dampen down volatility. The fund comes with an expensive price tag, but this has not been detrimental to its solid risk-adjusted return profile since the managers took over.

Rerated from Under Review

NN (L) Global Real Estate - Neutral

Ronald van Genderen

Following a broader reorganisation of its investment organisation and restructuring of its fund line-up, NN IP has completely overhauled the team and process of these funds as of 1 July 2018. The two former portfolio managers have been let go by NN IP and the management of this fund have been handed over to the Automated Intelligence Equity team, which is part of the Automated Intelligence Investing boutique. The AI Equity team in its current composition exists only very recently. The core is formed by three senior portfolio managers, who have been managing NN IP’s core and sector equity funds according the same approach that is now being applied at this fund, since April 2015. The team head and three data scientists only joined the team in 2018.

The new process in place, seeks for optimal exposure to both fundamental and behavioural factors: value, momentum, quality and sentiment. Since 2015, this approach has been applied at NN IP’s core and sector equity funds. For these funds, NN IP has added real estate specific fundamental data from SNL to its dataset and is looking to add more real estate specific datasets in the future. The cost level of the funds is favourable, as ongoing charges are substantially lower than for most of the comparable funds. Given the significant changes to the team and process, we reinstate the funds' Morningstar Analyst Rating at Neutral, while they were rated Bronze before.


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
GS Gbl Real Estate EQ-I Cap EUR8,526.17 EUR0.35Rating
Invesco Glbl IG Corp Bd C USD AD11.22 USD-0.52Rating

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