Morningstar Fund Ratings: Weekly Round-up

The latest batch of Morningstar fund rating changes features two new ratings, including one  US high-yield bond fund that is rated Gold

Mara Dobrescu 29 September, 2020 | 9:05AM
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Fund Ratings

New Ratings

PGIM Broad Market US High Yield Bond – Gold

Mara Dobrescu

We have initiated coverage of PGIM Broad Market US High Yield. The strategy benefits from a large, experienced staff, considerable resources, and a smart process. It has delivered impressive relative returns since its inception in 2016, but more important than its alluring record has been the strength and depth of PGIM's credit effort, a global team of more than 30 leveraged-finance analysts, many with decades of experience. The fund earns a Morningstar Analyst Rating of Gold on its cheapest share classes, while more expensive share classes earn a Silver Rating.

Candriam SRI Bond Global High Yield

Samiya Jmili – Bronze

Candriam SRI Bond Global High Yield is the ESG-focused version of Candriam bds Global High yield: it is managed by the same team which carries out here bottom-up security selection among the most sustainable issuers in the global high-yield universe. The process combines a robust sustainability screening to target best-in-class ESG performers, with deep fundamental analysis and relative value credit arbitrage. In January 2020, as seasoned manager Philippe Noyard took on a global credit leadership role at Candriam, he relinquished the reins of this strategy to Thomas Joret, his comanager since the fund’s launch in September 2017. Yet, his passing the torch does not equate a loss of experience at the strategy’s helm as Noyard remains actively engaged as a co-lead portfolio manager. We initiate coverage with Above Average ratings on both People and Process, which under our enhanced ratings framework, results in the cheapest share classes earning a Morningstar Analyst Rating of Bronze, while the most expensive ones land Neutral ratings.

Downgrades

Eaton Vance Intl (IRL) US High Yield Bond

Samiya Jmili

Eaton Vance US High Yield Bond, sporting a strong team and sensible process, remains an attractive opportunity for high-yield exposure. Under our enhanced ratings methodology, its cheapest share class receives a Morningstar Analyst Rating downgrade to Bronze from Silver, while its more expensive share classes are rated Neutral. Though long-time team leader Mike Weilheimer retired in January 2020, the effort he left behind remains impressive. Comanagers Kelley Baccei and Stephen Concannon, who have comanaged this fund since 2014, continue to helm the ship alongside Jeffrey Mueller, who joined them in late 2016. The analyst pool they lead has grown to 15 people as of mid-2020, including four experienced analysts coming on board since 2016.  The team’s approach of combining deep fundamental analysis with macro-driven risk constraints remains thoughtful and thorough.

Note: Under Morningstar's ratings methodology, different share classes of a fund may have a different rating

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

Mara Dobrescu

Mara Dobrescu  is a fund analyst at Morningstar France.