Morningstar Fund Ratings: Weekly Round-up

BlackRock and Templeton funds face downgrades in the latest Morningstar analyst ratings review

David Holder 28 August, 2019 | 9:12AM
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BlackRock Smaller Companies - Silver from Gold

David Holder 

Long-standing manager Mike Prentis retired from this mandate in June 2019 and Roland Arnold stepped up from co-manager to become sole decision-maker. Arnold has been investing alongside Prentis since 2006 and has built up a formidable long-term record of outperformance via his various smaller companies mandates. In addition, BlackRock has built up a long-term record of excellence in UK smaller companies’ investment based around a collegial approach to research focused upon unearthing sustainable growth. Despite a changing of the guard, BlackRock Smaller Companies Trust remains a high-conviction option for investors within this peer group. At the margin, and in recognition of longstanding veteran Prentis’ retirement, our conviction has been very modestly affected and we have moved the Morningstar Analyst Rating to Silver from Gold.

Templeton Global Income - Neutral from Bronze

Matias Möttölä 

We have downgraded our Morningstar Analyst Rating of the multi-asset fund Templeton Global Income from Bronze to Neutral. While the strategy continues to boast a strong fixed-income team led by Michael Hasenstab, the global equity group is going through significant personnel changes: long-tenured managers Heather Arnold and Norman Boersma are retiring from the strategy and the firm. Former analyst Warren Pustam has been named co-manager but lacks a public track record managing a diversified global equity portfolio. Lowering our conviction is also the fund’s risk management, which has not been effective enough in our opinion.

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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About Author

David Holder  is a senior investment research analyst at Morningstar