Morningstar Fund Ratings: Weekly Round-up

The latest round-up of Morningstar Analyst Rating changes, including upgrades to four Janus Henderson European funds

Peter Brunt 4 February, 2020 | 10:04AM

gold silver bronze

Upgrades

Janus Henderson European Selected Opps – Silver

Peter Brunt

We continue to have conviction in this strategy's manager and his consistent application of his investment approach over multiple market cycles. Under our enhanced ratings framework, which places a greater focus on fees and expected benchmark-relative performance, the Morningstar Analyst Rating for the I Acc share class is raised to Silver from Bronze. Other share classes range from Silver to Neutral.

Janus Henderson Continental European – Silver

The Morningstar Analyst Rating for the H € Acc share class is raised to Silver from Bronze. Other share classes range from Silver to Neutral.

Janus Henderson European Focus – Silver

The Morningstar Analyst Rating for the I Acc share class is raised to Silver from Bronze. Other share classes range from Bronze to Neutral.

Henderson European Focus (HEFT) – Silver

The Morningstar Analyst Rating is raised to Silver from Bronze.

Robeco QI Global Conservative Equities – Gold

Jeffrey Schumacher

This fund’s talented team, well-defined process, and reliable performance pattern make it an appealing offering for investors. Our conviction in the team and process has not changed, with People receiving a pillar rating of Above Average and Process receiving High. However, under our enhanced ratings framework, which places a greater focus on fees and expected benchmark relative performance, the Morningstar Analyst Rating for its cheapest share classes including the clean C share class increase to Gold from Silver, while more expensive classes land at Silver and Bronze.

Brandes European Value – Gold

Mathieu Caquineau

Brandes European Value benefits from an experienced and very stable team of five managers who share the same strict value approach. They are all analysts themselves, but they are also supported by a large team of like-minded analysts organised along global sectors. Our confidence in their skills and capabilities has increased over time, and this is reflected in the fund's People rating of High, while the Process Pillar receives an Above Average rating. Brandes' Parent rating was also recently confirmed as Above Average. Under our enhanced ratings framework, the Morningstar Analyst Rating for the institutional and clean share classes earns an upgrade to Gold from Silver. The retail share classes keep a Silver rating.

Downgrades 

Capital Group New World - Silver

Mathieu Caquineau

This fund’s broad and measured approach effectively damps emerging-markets volatility. The strategy also benefits from its team’s systemic strengths as well as the managers' experience, ability, and aligned interests. Under our new ratings framework, which places a greater focus on fees and expected benchmark-relative performance, the Morningstar Analyst Rating for the fund’s clean share class Z is lowered to Silver from Gold. Cheaper share classes are rated Gold, while the most expensive are rated Bronze.

Man GLG Japan CoreAlphaSilver

Robert Starkey 

This fund continues to be a good option for Japanese value equity exposure. Stephen Harker continues to apply a value-driven investment approach in a disciplined and consistent manner and is supported by his management stable team. The process has been consistently applied and is still expected to provide positive outcomes in the long run. However, there is a decrease in the conviction regarding the process given a re-evaluation of the strategy relative to similar peers, with emphasis on the manager’s self-appraisal of investment decisions.

This re-evaluation has led to a higher hurdle being set to achieve best-in-class status. Under our enhanced ratings framework, which places a greater focus on fees and expected benchmark-relative performance, the Morningstar Analyst Rating for the clean share class is lowered to Silver from Gold. The more expensive share classes receive a rating of Bronze, while the cheaper share classes receive a Silver rating. 

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

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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.

About Author

Peter Brunt  is a Senior Fund Analyst for Morningstar UK

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