Morningstar Fund Ratings: BlackRock Gold & General Downgraded

ANALYST RATINGS: This week Morningstar analysts have downgraded portfolio stalwart BlackRock Gold & General from Gold to Silver

Morningstar Analysts 22 May, 2018 | 10:45AM
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Downgrades

BlackRock Gold and General A IncSilver

BGF World GoldSilver

Fatima Khizou

Evy Hambro took the helm in April 2009 but his involvement with the strategy dates further back, making him one of the longest-tenured managers in the sector. He has consistently applied a disciplined and controlled approach through time that has proven successful in tough periods for gold but added little value in more positive environments.

While we continue to have high regard for lead manager Hambro and the overall supporting cast, we believe that the lower-beta approach and a policy of only making incremental change, a feature of the fund, constitute a hindrance in strong rising market conditions. These factors, coupled with high fees, have lowered our overall conviction in this fund and as a result we have downgraded the fund’s Morningstar Analyst Rating to Silver from Gold. 

GAM Multistock Luxury Brands Equity - Bronze

Fatima Khizou

We continue to think highly of GAM Multistock Luxury Brands Equity’s management duo. Its expertise in the luxury-goods sector, coupled with a sound and long-term investment approach, has served investors well over the long haul. However, we note that the fund’s ongoing charges on its clean share class relative to those of similarly run equity funds, both active and passive, rank on the higher end, giving it a greater hurdle to overcome in the future. As a result, the fund’s Morningstar Analyst Rating is downgraded to Bronze from Silver, reflecting our lower level of conviction in the fund's ability to outperform over the long term.

New Ratings

PGIM Global Total Return BondSilver

Mara Dobrescu

We have initiated coverage of PGIM Global Total Return Bond with a Morningstar Analyst Rating of Silver. The strategy benefits from Prudential’s large investments in people and analytics, and portfolio managers Michael J. Collins, Robert Tipp, and Arvind Rajan have built a strong long-term track record through a wide range of performance drivers. The fund also carries a modest price tag, which adds to its competitiveness in the Global Flexible Bond Morningstar Category.

 

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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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BGF World Gold A239.33 USD0.18Rating
BlackRock Gold and General A Inc1,264.75 GBP-0.31Rating
GAM Multistock Luxury Brands Eq USD C348.70 USD0.12Rating

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