Morningstar Fund Ratings: Weekly Round-up

ANALYST RATINGS: This week fund analysts reveal a new rating for BlueBay and an upgrade for Robeco

Morningstar Analysts 7 August, 2018 | 7:36AM
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New Ratings

BlueBay Global Sovereign Opportunities - Neutral

Francesco Paganelli

We have initiated coverage of BlueBay Global Sovereign Opportunities Fund with a Morningstar Analyst Rating of Neutral. We think this is a promising strategy within the liquid alternative global macro space, but in our view it’s still early to have full confidence in the fund’s ability to deliver strong long-term risk-adjusted returns. Lead portfolio manager Russel Matthews drives a team approach to execute the mandate.

This hedge-fund-like strategy invests in global government bonds, interest rates, and currencies, targeting an absolute return of cash + 5%–7% with an expected volatility of 8%.

Matthews and his colleagues adopt a discretionary approach to take both long and short positions in developed and emerging markets, with plenty of leeway to express their views. Overall, we think there are some strengths here, including an experienced and well-resourced team of fixed-income specialists with a global reach. However, this is also a relatively untested strategy with a high flexibility in terms of execution, resulting in a less predictable pattern going forward, which gives us come caution at this point.

Upgrades

Robeco BP US Select Opportunities – Silver

Natalia Wolfstetter

With more than 30 years of investment experience, Steven Pollack is a seasoned manager who has led Robeco BP US Select Opportunities' American twin, JHancock Disciplined Value Mid Cap, since July 2001. This fund is one of the most reliable mid-cap options, even if its massive asset base limits its flexibility. The fund effectively blends quantitative and fundamental analysis.

The approach is centred on companies with attractive relative valuations, positive momentum, and sound business fundamentals. Pollack typically avoids stocks beset by uncertainty or setbacks, and that has contributed to good downside protection. It earns an upgrade to a Morningstar Analyst Rating of Silver.

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
BlueBay Global Sov Opps I USD166.86 USD0.92Rating
Robeco BP US Select Opports Eqs I $464.04 USD0.73Rating

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