Morningstar Fund Ratings: Weekly Round-up

Comgest and GQG Partners are added to Morningstar's stable of rated funds while Lazard Apha Euro is downgraded 

Mathieu Caquineau, CFA 13 August, 2019 | 8:59AM
Facebook Twitter LinkedIn

analyst rating

New Ratings

Comgest Growth Europe ex. UK - Gold

Mathieu Caquineau

We have initiated the coverage of Comgest Growth Europe ex UK with a Morningstar Analyst Rating of Gold. While the history of this fund since its launch in 2014 is not the longest, the track record of the strategy in the Pan European universe is much longer, and Comgest Growth Europe already carries a Morningstar Analyst Rating of Gold.

This fund benefits from the same robust investment process, geared towards quality growth stocks and executed with discipline. The team of eight fund managers/analysts is stable, experienced, and cohesive. Given the strict stock-picking criteria, the investment universe is relatively restricted. Each analyst/manager only provides in-depth research on a dozen stocks, and each company within the universe is covered by at least two team members. All of Comgest’s European equity funds are managed by this team with the same investment strategy.

GQG Partners Emerging Markets Strategy - Silver

Mathieu Caquineau

We have initiated coverage of GQG Partners Emerging Markets Equity with a Morningstar Analyst Rating of Silver. This fund's parent firm, GQG Partners, was created by Rajiv Jain in mid-2016 after he left Vontobel Asset Management. At Vontobel, Jain built an enviable long-term record with the same "quality growth" approach. He looks for companies with steady growth; a manageable amount of debt, if any; proven leadership with a record of prudent capital allocation; and a history of weathering tough economic conditions. There are some uncertainties, though, such as the relatively short collaboration between him and the nine analysts he's hired and a significant workload. Jain is sole manager of four strategies, and the full analyst team reports to him. But all in all, this strategy is an attractive option considering Jain’s strong credentials.


Lazard Alpha Euro - Neutral from Bronze

Mathieu Caquineau

We have lowered the Morningstar Analyst Rating of Lazard Alpha Euro to Neutral from Bronze. High risk taking has not paid off for investors in recent years, which is increasingly disappointing given that the flexible nature of the stock-picking is intended to help the fund weather different market conditions. Top-down views help to position the portfolio across the cycle, but this has lacked effectiveness. Our concerns also stem from the equal weighting of the 40 or so stocks in the portfolio, which we think has aggravated stock-picking issues. There are still some merits here for the most patient investors. Régis Bégué is experienced and shown good stock-picking skills on a more balanced mandate. The team of six around him has been stable and provides research support.

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.

Facebook Twitter LinkedIn

About Author

Mathieu Caquineau, CFA

Mathieu Caquineau, CFA  Senior Fund Analyst, Morningstar France

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures