Morningstar Fund Ratings: Weekly Round-up

The latest round-up of Morningstar Analyst Rating changes, including upgrades for three iShares bond ETFs

Jose Garcia Zarate 30 January, 2020 | 1:21PM
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gold silver bronze

Upgrades

iShares USD Treasury Bond 1-3yr UCITS ETF (IBTA) – Silver

iShares $ Treasury Bond 3-7yr UCITS ETF (CU71) – Silver

iShares $ Treasury Bond 7-10yr UCITS ETF (IBTM) – Silver

Jose Garcia-Zarate

These are compelling options for investors seeking targeted short-term, mid-term and 10-year maturity exposure to the market of US Treasuries. Their appeal has been enhanced in the wake of a substantial cut to the ongoing charge from 0.20% to 0.07%. The strategy sees an upgrade to the Morningstar Analyst Rating from Bronze to Silver.

Downgrades 

Comgest Growth India – Bronze 

Samuel Lo 

Comgest Growth India continues to be a good option for Indian equity exposure, owing to its solid management team and a well-codified approach. Under our new ratings framework, which places a greater focus on fees and benchmark-relative performance expectations, the vehicle’s cheapest share classes earn Morningstar Analyst Ratings of Silver, while the more expensive share classes, including the USD Acc retail share class, fall to Bronze.

BGF Global Corporate Bond – Neutral 

Louise Babin 

Our conviction in BGF Global Corporate Bond's investment team still stands despite a recent change at the helm. However, costs have a significant impact in this universe where the benchmark index has proved difficult to beat over long periods. Under our enhanced ratings framework, which places a greater focus on fees and benchmark-relative performance, the Morningstar Analyst Rating for the clean D2 USD share class is lowered to Neutral from Bronze. The cheapest of the sterling-hedged share classes receives a Bronze rating, while the majority of the remaining share classes are Neutral, and the most expensive share classes are rated Negative. 

Invesco UK Growth – Bronze 

Jonathan Miller

Invesco UK Growth benefits from a long-standing manager with a contrarian mindset. Martin Walker has successfully managed money in the same style since 2003. When it comes to the process, we tend to see a more defined structure in value-sensitive peers that we rate highly, meaning the Morningstar Analyst Rating for the clean Z share class is reduced to Bronze from Silver. Other more expensive share classes are rated Neutral.

Note: Under the enhanced Morningstar Analyst Rating different share classes of funds may have different ratings

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

Jose Garcia Zarate

Jose Garcia Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe