Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week fund analysts reveal new ratings for BlackRock, Boston Partners and Munizich

Morningstar Analysts 2 October, 2018 | 9:09AM
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New Ratings

BGF Global Multi-Asset Income – Silver

Barbara Claus

We have initiated coverage of BGF Global Multi-Asset Income. This fund has been managed since November 2013 with the same income-oriented approach that has been successfully applied in its US sibling, BlackRock Multi-Asset Income Instl, since late 2011 when lead manager Michael Fredericks took the helm.

BGF Global Multi-Asset Income’s managers have demonstrated their ability to deliver a reliable income while keeping volatility under control. They make an effective use of the firm’s strong resources. Plus, fees have remained very competitive here, which also supports the fund’s Morningstar Analyst Rating of Silver.

Munizich LongShort Credit Yield – Neutral

Matias Möttölä

We have initiated coverage on the Munizich LongShort Credit Yield funds with an Analyst Rating of Neutral. This US high yield-focused fund has recently changed lead managers: Jason Horowitz, who had managed the fund since its 2012 inception, left the company in July 2018 and was replaced by Brian Lieberman, who had served as Horowitz’s co-manager since mid-2015.

Lieberman joined Muzinich in 2014 as analyst from JP Morgan. This is his first lead manager role, but Lieberman is surrounded by an experienced team led by Michael McEachern and has two dedicated analysts and a trader at his disposal.

The fund’s process combines four different sleeves into a portfolio that has thus far been very resilient in down markets. The main thrust of the portfolio comes from long US high yield picks, but the manager can also use single-name and index shorts and has a separate arbitrage sleeve. In addition, a book of short maturity bonds is used to stabilise the return stream and create a small income stream.

Boston Partners Global Long/Short – Bronze

Francesco Paganelli

We have initiated coverage of SPS Boston Partners Global Long/Short with a Morningstar Analyst Rating of Bronze. We think the fund represents a strong proposition for investors seeking a research-driven, discretionary global long-short equity strategy.

It applies the firm's well-defined investment process to a global universe of stocks in both long and short format and benefits from an experienced and well-resourced team led by Joseph Feeney, the firm's CIO, Chris Hart, and Josh Jones. The fund’s fees are in line with its competitors. Overall, we think Boston Partners’ time-tested approach to global stock investing stands out among its peers, supporting our positive view on the strategy.

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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