The firm’s “analyst rating” is forward-looking. On an annual basis, analysts review and, if necessary, re-rate the funds on a five-tier scale with three positive ratings of Gold, Silver and Bronze, a Neutral rating and a Negative rating.
Analyst ratings for January
| Fund |
Morningstar analyst rating |
Previous Morningstar analyst rating |
| Legg Mason Western Asset US Core Bond |
Silver |
– |
| JPM Global Macro Opportunities (Lux) |
Bronze |
– |
Source: Morningstar
New ratings
1. Legg Mason Western Asset US Core Bond (available for sale in Hong Kong and Singapore)
Coverage initiated with a Silver rating. Ken Leech, Western’s chief investment officer, has been at the helm of this strategy since 1990, when the US version of this Irish-domiciled fund was launched. Leech is supported by three experienced co-managers and they leverage Western’s well-resourced macroeconomic and research teams. The process is robust and well executed, combining top-down macro views with security selection. The managers look for long-term fundamental value, aiming at identifying mispriced securities.
The fund emphasises the team’s highest convictions while maintaining a healthy level of diversification among its active bets. The fund strongly underperformed in 2008 but from thereon the managers have been delivering attractive risk-adjusted returns to investors. The fund’s deep and experienced resources, along with its robust and well- executed process, make this fund a strong contender in the US dollar diversified bond space.
–Irene Ruiz Espejo, analyst for manager research
2. JPM Global Macro Opportunities (Lux) (available for sale in Hong Kong and Singapore)
Coveraged initiated with a Bronze rating. This strategy is managed jointly by James Elliot, Shrenick Shah and Taleb Sheikh, who lead JPM’s global macro team. The approach gives the managers more discretion to increase risk than is typical of other macro-multi-strategy offerings. However, the global macro team is well-integrated within the broader JP Morgan business, providing strong oversight of risk taking and effective use of other teams by the managers. This, along with the managers’ nimble decision making, has led to strong added value from both sector thematic positioning and security selection.
-Randal Goldsmith, senior analyst for manager research
Reaffirmed ratings
Morningstar has also reaffirmed ratings for several funds. These are:
| Fund |
Morningstar analyst rating |
Analyst |
| BGF World Bond |
Bronze |
Irene Ruiz Espejo |
| MFS Meridian Emerging Markets Debt |
Bronze |
Irene Ruiz Espejo |
| JPM Emerging Europe Equity (Lux) |
Bronze |
Lena Tsymbaluk |
| JPM US Value |
Bronze |
Jeffrey Schumacher |
| Neuberger Berman Emerging Market Debt Hard Currency |
Silver |
Niels Faassen |
| Pictet-Emerging Local Currency Debt |
Bronze |
Niels Faassen |
| Robeco QI Emerging Conservative Equities |
Bronze |
Mathieu Caquineau |
| Schroder ISF Euro Equity |
Silver |
Peter Brunt |
| Threadneedle (Lux) UK Equities |
Bronze |
Simon Dorricott |
