Following a recent Morningstar Analyst Ratings meeting, we have downgraded the rating for the Polar Capital Japan fund to a Morningstar Analyst Rating™ of Bronze. The fund previously held a Silver rating. Although the fund’s record remains competitive over the long-term, we have noted poor performance over three and five years in risk-adjusted terms. The unconstrained nature can result in the fund appearing out of step with the market and peers, and we expect periods of underperformance over the short term to some degree. However, the length and extent of the recent underperformance is cause for concern. While we acknowledge that the managers have the flexibility for top-down views to influence the portfolio, their use of this flexibility has been disappointing. Having said that, while our conviction has waned slightly, we continue to believe that this remains a solid offering for long-term investors.
See the latest Morningstar fund rating news here.
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