Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: Four downgrades this week, including Miton and M&G, and a new rating for an Investec multi-asset income fund

Barbara Claus 30 July, 2019 | 10:29AM
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New Ratings

Investec GSF Global Multi Asset Income – Bronze

Barbara Claus

We have initiated the coverage with a Morningstar Analyst Rating of Bronze. While the history of this strategy since its launch in May 2013 is not the longest, we like its well-structured investment process, executed by a solid management team. Investec’s above average stewardship and below-average fees are additional positives.


LF Miton Cautious Multi Asset – Neutral

LF Miton Defensive Multi Asset – Neutral

Rajesh Yadav

While we appreciate that the Miton Multi-Asset range is managed by seasoned managers who have worked together for a long time, we find there is a lack of visibility on how their overall macro thinking translates into the sizing of individual themes, their evolution over time, and regional and sector exposure. We find this is especially important as the thematic view is deemed to drive the bulk of performance across the range. As result, our view has been tempered somewhat. We therefore lower the Morningstar Analyst Ratings for both funds from Bronze to Neutral.

M&G (Lux) European Strategic Value – Bronze

Mathieu Caquineau

M&G (Lux) European Strategic Value has been assigned a Morningstar Analyst Rating of Bronze. The fund was previously rated Silver before it was placed Under Review following the announcement of a series of changes in portfolio management responsibilities affecting Richard Halle, who has been the lead manager of this strategy since launch in 2008. Halle has taken over two funds, Neutral-rated M&G Pan European Dividend and M&G European Select, and is now also one of three co-managers at M&G Global Recovery, a global equity fund. While these three portfolios are currently very different from European Strategic Value’s, Halle plans to bring them in line with his value approach. Nonetheless, it represents an extra workload for Halle, especially because he does a lot of research himself. He expects to increasingly use M&G’s global sector analyst team of 10. This team has been rebuilt and reinforced since 2014, but it is still a work-in-progress. We are therefore less convinced of this strategy’s potential than before. 

M&G (Lux) Pan European Dividend – Neutral

Jeffrey Schumacher

We are reinitiating coverage on M&G (Lux) Pan European Dividend with a Morningstar Analyst Rating of Neutral, which was a Bronze rating before we put the fund Under Review when major revisions to its investment team and process were announced. Phil Cliff has relinquished portfolio management duties as of July 2019 and was replaced by Richard Halle. With the arrival of Halle, the fund is the hands of an experienced and skilled stock-picker, whose workload has increased somewhat when he took on management responsibilities on this fund and two other strategies, next to managing the Bronze-rated M&G (Lux) European Strategic Value fund.

It is reassuring that the funds are expected to have a large overlap in style and holdings. With Halle at the helm, investors can prepare for a style change. We expect to see a transformation as Halle will likely manage the fund with a stronger emphasis on value and less exposure to quality stocks as opposed to the more quality growth-oriented approach under Cliff. As the design of the process is not fully crystallised yet and must prove itself in a dividend mandate, we remain on the conservative side.


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
M&G (Lux) Eurp Strat Val CI EUR Acc14.71 EUR0.80Rating
Ninety One GSF Glb MA Inc IX Inc-2 USD18.25 USD0.19Rating
Premier Miton Cautious Mlt-Asst B Acc319.62 GBP0.76Rating
Premier Miton Defensive Mlt-Asst B Acc407.31 GBP0.42Rating

About Author

Barbara Claus

Barbara Claus  war von 2012 bis 2019 Fondsanalystin bei Morningstar.

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