Morningstar's Manager Check-Up

REAFFIRMED RATINGS: Why Morningstar fund analysts positively rate JOHCM Continental European, T. Rowe Price Asian ex-Japan and Robeco US Premium Equities

Jonathan Miller 23 January, 2019 | 10:08AM

 

Jonathan Miller: Welcome to the Morningstar Manager Check-up for three fund updates from our team of fund analysts.

The JOHCM Continental European fund has been managed by Paul Wild since 2010, but his association with the fund dates back to 2003, when he was working alongside the previous manager. Wild uses an investment strategy that has proved successful and provided investors with solid returns over time. He starts by taking macro views, which inform the portfolio’s weightings, and then hunts for stocks that fit these views across the European ex-UK universe.

Here he assesses companies to identify the most compelling stocks with strong potential earnings growth and positive earnings momentum. The approach also sees sector positions that don’t deviate too far from the index. The fund’s experienced manager and his implementation of the process make it an appealing offering, so the fund retains its Morningstar Analyst Rating of Silver.

Next, the T. Rowe Price Asian ex-Japan fund which has been run by Anh Lu since 2009. She’s backed by a well-resourced, experienced, and stable regional team of 17 analysts based in Hong Kong and Singapore. The bedrock to this approach is bottom-up research. Lu prefers industry leaders that display strong earnings prospects, the ability for multiple expansion, and reasonable valuations.

To execute the process, Lu relies heavily on the deep analyst team, who conducts in-depth fundamental research on industries and firms. Lu has posted respectable results throughout her tenure, and what also helped reaffirm the Morningstar Analyst Rating of Bronze was the fact that fees were significantly cut last year. This will help serve investors in what is a solid approach.

Finally, Robeco BP US Premium Equities has been managed by the experienced Duilio Ramallo since 2007. He’s been at the firm since 1995 so is very familiar with the house approach to selecting stocks. It’s centred on companies with sound business fundamentals, attractive relative valuations, and positive momentum.

There is a leaning towards value as a style as it’s an important part of the assessment of stocks. But given he also looks to earnings revisions, signs of momentum and healthy fundamentals, the fund has been able to avoid value traps. Ramallo is willing to make large sector bets so we’d describe the approach as disciplined but also opportunistic.

The fund can hold its own in choppy markets and over a full market cycle we believe it can serve investors well, meriting its Morningstar Analyst Rating of Silver.

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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JOHCM Continental European Y GBP Inc1.67 GBP0.30
Robeco BP US Premium Equities F €270.62 EUR1.89
T. Rowe Price Asian ex-Japan Eq Q USD14.75 USD-0.82

About Author

Jonathan Miller  is Director of Manager Research, Morningstar UK

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