Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week fund analysts reveal a new rating for TCW and a downgrade for Fidelity

Morningstar Analysts 25 September, 2018 | 9:50AM
Facebook Twitter LinkedIn

New Ratings

TCW Funds Emerging Markets Local Currency Income - Bronze

Irene Ruiz Espejo

TCW Funds Emerging Markets Local Currency Income is managed by veteran investors who have put the strategy’s flexibility to good use over time. Managers Penny Foley and David Robbins have decades of experience in emerging markets bond trading and research. They lead the effort here, while long-time trader Alex Stanojevic was named co-manager in mid-2017. The managers’ approach has a good mix of flexibility and caution, as well as thoughtful country analysis, which is key for this very volatile pocket of the fixed-income universe.

The team evaluates interest rates and currencies on a country-by-country basis, and its higher-conviction positions aren’t usually more than a few percentage points off the JPM GBI-EM Global Diversified Index weightings, which makes sense given the small number of names – under 20 – in the sovereign benchmark. The team has flexibility on other levels, like off-index plays in frontier markets and exposure to emerging markets currencies, which is dialled up or down depending on their valuation views. We are initiating coverage with a Morningstar Analyst Rating of Bronze.  

Downgrades

Fidelity India Focus Fund - Bronze

Jan Nel

Fidelity India Focus features a skilful decision-maker in Sandeep Kothari, who has been in place since September 2013 and is supported by a strong onshore team. Kothari invests in both growth-at-a-reasonable-price (GARP) and deep-value cyclical stocks and has been able to deliver for investors using his considerable experience and intuition. While this remains a strong offering, we have re-assessed the peer-relativities within the competitive asset class from a portfolio manager perspective. We believe the investment process can also benefit from more structure, such as the allocation between GARP and deep-value cyclical stocks. A Bronze Rating is therefore more reflective of our conviction level in the fund.

 

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Fidelity India Focus Y-Acc-USD23.75 USD0.46Rating
TCW Fds Emerging Mkts LC Income IU765.97 USD-0.26Rating

About Author

Morningstar Analysts   -