Morningstar Fund Ratings: Weekly Round-up

This week sees new ratings for JPM and M&G funds and a downgrade for MFS Meridian

Louise Babin 10 September, 2019 | 11:00AM
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Morningstar ratings

New Ratings

JPM America Equity - Bronze

We have initiated coverage on JPM America Equity with a Morningstar Analyst Rating of Bronze. The fund benefits from seasoned managers, deep resources, and a decent process. JPM America Equity amalgamises the highest convictions of the veteran duo Jonathan Simon and Tim Parton, who run their own value and growth sleeves in the strategy, respectively. Simon selects the highest convictions from his US-domiciled Silver-rated JPMorgan Value Advantage fund, while Parton sources ideas from his Bronze-rated US-domiciled JPMorgan Growth Advantage fund. Both managers rely on a large team of career analysts and significantly invest in the strategies they manage. A decent process is in place to construct a 20- to 40-stock portfolio that displays their highest convictions.

Despite that, the allocation to the value and growth sleeves have been kept in a 60%-40% range, and the strategy’s historical portfolios have consistently resided in the growth column of the Morningstar Style Box. We would have expected a more balanced profile from such an approach, and this limit the strategy’s attractiveness in our view. In addition, the fund has hardly invested in small caps, while those have added value in the Advantage funds that Simon and Parton manage. The strategy’s track record versus the US Large-Cap Growth Morningstar Category is solid, but the fund trails the Russell 1000 Growth Index.

M&G (Lux) Global Macro Bond - Silver

Louise Babin

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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

Louise Babin  is a senior analyst for Morningstar.