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Baring HK China fund penalised for size

Morningstar OBSR has downgraded the Baring Hong Kong China Fund from a bronze to a neutral rating because it believes the execution of the investment process is hampered by the fund’s size of $2.3bn.

The Irish-domiciled Oeic was launched in 1982 and is run by Agnes Deng, who joined Barings in that same year from Standard Life Investments (SLI).

According to FE Analytics the SLI China Fund she managed consistently ranked in the top quartile in peer group performance surveys, but the Barings fund is ranked fourth quartile over 12 months, three and five years.

The graph below shows the fund’s performance against its peer group over three years.

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Morningstar OBSR said it was “confident” in Deng, but felt the fund’s size combined with a relatively unstable analyst team and the lack of a supportive long-term track record meant it better reflected a neutral rating.

Part of the Mark Allen Group.