Morningstar's Manager Check-Up

REAFFIRMED RATINGS: Why Morningstar analysts positively rate funds from SLI, Artemis and Aviva

Samuel Meakin 6 March, 2019 | 8:21AM
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Samuel Meakin: Welcome to the Morningstar Manager Check-up for three fund updates from our research team.

The SLI Global Smaller Companies fund is managed by Alan Rowsell and leverages the group’s “Matrix” investment approach, with a multi-factor quant model serving as the team’s starting point for idea generation.

The Matrix approach has been used for over two decades in UK equities, and while it has been heavily back-tested in other markets, it has only been used in a global context since this fund’s launch in 2012. Nonetheless, performance has been strong so far, even accounting for the portfolio's growth tilt, and it is reassuring to see that stock selection has added value across all markets. We have a positive view of Rowsell’s execution of the approach thus far, and the fund retains a Morningstar Analyst Rating of Bronze.

Next, the Artemis European Opportunities fund, which has been managed by Mark Page and Laurent Millet since its launch in 2011. In fact, they’ve worked together for longer than that, going back to their days at LV Asset Management, where Page was head of European equities.

We think they each bring complementary skills to the table and therefore form a strong partnership. Their investment process seeks out quality companies producing high returns on invested capital, and they seek to invest in those companies at valuations they consider to be reasonable. The approach has been executed well over their time at Artemis, and the fund therefore retains a Morningstar Analyst Rating of Silver.

Aviva Investors US Equity Income has been managed by Henry Sanders and Thomas Forsha since its launch in 2011, but actually Sanders has managed the strategy to good effect in the US since 2005. The managers target firms with solid business models trading at discounts to their estimation of intrinsic value.

The outcome is a portfolio that contains a balance of deeper value stocks and somewhat growthier relative value stocks. The yield target is set at the overall portfolio level, which means that they can combine higher yielding names with lower-yielding names, often in the mid- and small-cap space. We continue to have conviction in the experienced management team and disciplined approach, and the fund retains a Morningstar Analyst Rating of 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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Samuel Meakin  is a fund analyst for Morningstar

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