Morningstar Fund Ratings: Weekly Round-up

Our weekly round-up of changes to funds' Morningstar Analyst Ratings 

Samuel Meakin 27 May, 2020 | 9:12AM
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New Ratings

Janus Henderson US Growth - Bronze

Samiya Jmili 

This fund was originally an offering in Henderson Global Investors’ line-up. Six months after the merger with Janus Capital in May 2017, the investment team behind the new entity’s Janus Henderson Forty strategy took over here and started managing this Oeic fund in a similar fashion. The fund has an overall standard approach to investing in US large-cap growth equities, whose growth bent provided a tailwind in recent years. Yet its skilled managers’ duo stands out in comparison with peers, as Doug Rao and Nick Schommer boast a solid stock-picking track record in the US version of this strategy. Therefore, we are initiating coverage here with Above Average and Average ratings on the People and Process Pillars, respectively. This leads to a Morningstar Analyst Rating of Bronze for the fund’s cheapest share class, while the remainder classes earn a Neutral.


Janus Henderson China Opportunities - Neutral from Bronze

Lena Tsymbaluk

Charlie Awdry, who has managed Janus Henderson China Opportunities since 2006, has stepped off the fund in order to take a career break. While there is continuity with comanager May Ling Wee, who has worked on this strategy alongside Awdry since August 2015, we haven't had visibility to her over the years, and there is some uncertainty with regard to a comanager joining in June 2020. In addition, we would like to monitor her implementation of the process as she has spent more time on bottom-up analysis, while Awdry has been more guided by specific industry views. As a result, the Morningstar Analyst Rating for all share classes, including the clean I Acc share class, has been downgraded to Neutral from Bronze.

Merian Europe ex UK Smaller Companies - Neutral from Bronze

Samuel Meakin

Following a prolonged period of net redemptions from Merian Europe (Ex UK) Smaller Companies that has continued into 2020, the fund's size as of end-April stood at less than GBP 30 million. The outflows have led to significant ownership concentration among the largest remaining investors. Uncertainty over the strategy’s future direction is further exacerbated by the agreed acquisition of Merian by Jupiter. The team supporting portfolio manager Ian Ormiston has also undergone some upheaval in recent times. The Morningstar Analyst Ratings for all (unhedged) share classes are therefore moved to Neutral from Bronze.

Note: under the Morningstar methodology 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

Samuel Meakin  is a fund analyst for Morningstar

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