Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week Morningstar analysts reveal new fund ratings for Acadian, an upgrade for a global investment trust and a downgrade for Fidelity

Morningstar Analysts 12 February, 2019 | 8:23AM
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New Ratings

Acadian Global Managed Volatility – Bronze

Natalia Wolfstetter

Acadian Global Managed Volatility leverages a strong research team to deliver returns with limited volatility, with a focus on downside protection. The team saw several changes in 2018, but the depth of Acadian’s broader resources and the systematic nature of the process mitigates key-person risk. Acadian’s research capabilities are a key strength here and have helped the shop enhance their process over time.

Meaningful exposure to mid- and smaller-cap securities, many of which are not benchmark constituents, differentiates Acadian's portfolio from other low-volatility strategies and the minimum volatility index. Overall, a well-researched and executed process supports our positive view of the strategy.


Edinburgh Worldwide Investment Trust (EWI) – Silver

David Holder

The Global Discovery team at Baillie Gifford seeks to identify ambitious and entrepreneurial companies that are able to disrupt incumbent operators and take market share. The team also leverages off the wider resources at Baillie Gifford for this global small-cap offering, which includes over 100 investors on 18 investment desks.

In our view, Baillie Gifford is uniquely qualified to pursue this type of investment given its benchmark-agnostic approach, bottom-up focus, and patient approach to investment. Investors should be aware that, with a focus on nascent companies in volatile sectors, the strategy is likely to offer a very bumpy ride. However, in recognition of our increasing conviction across various facets of the strategy, we have awarded the fund a Morningstar Analyst Rating of Silver from Bronze.


Fidelity Euro Corporate Bond – Neutral

Evangelia Gkeka

Experienced investor David Simner, who has been lead portfolio manager for this concentrated high-conviction strategy since 2009, is going to leave the firm at the end of Q1 2019. His replacements are either relatively new to the firm or have limited lead portfolio manager experience.

The change in leadership and transition into a joint lead portfolio manager structure creates uncertainty over the ability of the new team to execute the process efficiently and they will be starting their track records from scratch. We have therefore downgraded the strategy to a Morningstar Analyst Rating of Neutral, having previously been rated Bronze.

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
Acadian Glbl Mgd Vol Eq UCITS C Acc  
Edinburgh Worldwide Ord145.40 GBX-0.55Rating
Fidelity Euro Corporate Bond Y-Acc-EUR32.98 EUR-0.48Rating

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