Morningstar Fund Ratings: Weekly Round-up

In this week's ratings round-up, we unveil the latest upgrades and downgrades from Morningstar's analysts

Thomas De Fauw 18 January, 2022 | 9:56AM
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New Ratings

BSF Managed Index Portfolios Conservative D2 – Bronze

BSF Managed Index Portfolios Growth D2 – Bronze

Thomas De fauw

We initiate coverage on BSF Managed Index Portfolios Conservative and BSF Managed Index Portfolios Growth with a Morningstar Analyst Rating of Bronze for their cheaper share classes, including the clean (D2) share class, while pricier shares are rated Neutral. Investors benefit from an investment approach that combines low-cost index investing with active asset allocation and topnotch risk management, earning a Process Pillar rating of Above Average for both funds. This predominantly quantitative strategy benefits from BlackRock’s Model Portfolio Solutions expertise but lead manager Rafael Iborra’s short management experience combined with significant discretionary power leads to a People Pillar rating of Average.

Upgrades

BSF Managed Index Portfolios Defensive D2 – Bronze from Neutral

BSF Managed Index Portfolios Moderate D2 – Bronze from Neutral

Thomas De fauw

We are upgrading the Process Pillar rating to Above Average from Average as we have gained more confidence in the team’s research and implementation capabilities, leading to a Morningstar Analyst Rating of Bronze for both funds' cheaper share classes, including the clean (D2) share class. Pricier shares remain rated Neutral. The strategy continues to benefit from BlackRock’s Model Portfolio Solutions expertise, but the lead manager’s short management experience combined with significant discretionary power keep the People Pillar rating at Average.

Schroder ISF Asian Total Return C Acc USD – Gold from Silver

Samuel Lo, CFA

Schroder ISF Asian Total Return's formidable management duo and time-tested investment approach continue to instil the highest level of conviction, and both People and Process ratings are maintained at High. Comanagers Robin Parbrook and King Fuei Lee are both topnotch investors who have consistently impressed us with their exceptional investment skills over the years. The strategy is supported by one of our favourite teams in the region, sporting 41 Asia-Pacific ex-Japan analysts with 15 years of industry experience and seven years of firm tenure on average.

The strategy follows a robust and time-tested quality-focused investment approach that focuses on stocks with superior or improving return on invested capital relative to the weighted average cost of capital, and it may utilize strategic and tactical hedging, which allows the comanagers to invest in their highest-conviction ideas even in countries where overall valuations may be expensive. Reflecting our highest level of conviction, the strategy's clean C Acc USD share class and the C Dis GBP AV share class were upgraded to a well-deserved

As part of Morningstar's enhanced methodology for Analyst Ratings, different share classes 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

Thomas De Fauw

Thomas De Fauw  is a fund analyst for Morningstar