Morningstar Fund Ratings: Weekly Round-up

The latest round-up of Morningstar Analyst Rating changes features two upgrades to Gold, including an Asia-focused investment trust run by Stewart Investors

Jeffrey Schumacher 3 March, 2020 | 9:39AM
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ratings

Upgrades 

Pacific Assets (PAC) – Gold from Silver

Andrew Daniels 

Pacific Assets is run by the 12-member Sustainable Funds Group within Stewart Investors. Although David Gait has been leading this closed-end vehicle since July 2010, he’s been running this strategy’s UK-domiciled open-end vehicle – Stewart Investors Asia Pacific Sustainability – since December 2005. Gait is an experienced investor with more than 20 years of firm tenure and has also led the larger-cap focused Stewart Investors Asia Pacific Leaders strategy since July 2016. He is joined by Sashi Reddy, who joined the firm in 2007 and is the lead on Stewart Investors Indian Subcontinent Sustainability. 

The duo employs Stewart Investors’ best-in-class investment approach, seeking stocks led by reliable management teams that can deliver sustainable and predictable growth through pricing power, franchise strength, and limited regulatory oversight. Not only do Gait and Reddy consistently demonstrate an intimate knowledge of current and prospective holdings, we’ve also been impressed with other members of the stable SFG team, including Douglas Ledingham and Jack Nelson. Overall, increased conviction in – and comfort with – Gait, Reddy, and the supporting SFG subgroup has led to a Morningstar Analyst Rating upgrade to Gold from Silver. 

Kempen (Lux) European High Dividend – Gold from Silver

Jeffrey Schumacher 

This fund boasts a long-tenured and well-experienced team that has skillfully executed a disciplined process. Our level of conviction in the team and process has not changed, with the People Pillar rating standing at High and the Process rating Above Average. 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 have been upgraded to Gold from Silver. One other share class receives a Bronze rating.

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

The Morningstar Investment Conference Takes Place 28-29 April 2020

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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

Jeffrey Schumacher  is a Fund Analyst with Morningstar Benelux.