New Ratings
DWS Invest Multi Opportunities – Bronze
Mara Dobrescu
We have initiated our coverage of DWS Invest Multi Opportunities with a Morningstar Analyst Rating of Bronze. We have gained a high conviction into DWS’ Multi Asset Total Return Team over time, which also manages Silver-rated total return fund DWS Concept Kaldemorgen. Co-team head Henning Potstada has been the lead manager of the fund since 2009, and he has proved he has the skill to implement the flexible-allocation approach well. Below-average fees add to the fund’s appeal.
Upgrades
Robeco QI Emerging Conservative Equities – Silver
Andrew Daniels
Increased conviction in the approach that underpins this strategy drives a Morningstar Analyst Rating upgrade to Silver from Bronze. The strategy uses an entirely quantitative-based approach, an area where Robeco has extensive experience and has invested heavily in human resources over the years. The team that runs this fund is led by Pim van Vliet, whose academic work the model is based on. He is joined by five other comanagers, who all invest in the strategy, as well as a stable group of 10 quant researchers. The time-tested quant model mainly seeks low-risk stocks, as measured by their volatility and distress metrics, but valuation and momentum factors are also incorporated. Overall, the approach is highly disciplined and repeatable, and the team has consistently enhanced the model over time. The strategy has a predictable return profile – tending to lag during strong market rallies and lead in volatile environments – and sports attractive fees, which give it a built-in advantage over peers. All told, this strategy’s many strengths position it to be a long-term winner.
T. Rowe Price European Equity – Silver
Samuel Meakin
The fund’s Morningstar Analyst Rating has been upgraded to Silver from Bronze due to increased conviction in its management and approach. Lead manager Dean Tenerelli is well equipped for the task at hand here, with more than 25 years of investment experience overall. He has applied his approach consistently and successfully over time, with the notable exception of 2016, as he executed certain aspects poorly. However, he had delivered strong results in a mix of different climates previously and has learnt from that tricky period. The fund, which also boasts below-average costs and a strong parent firm, has returned to form since, and we believe investors are in good hands going forward.
T. Rowe Price Continental European Equity – Silver
Samuel Meakin
The fund’s Morningstar Analyst Rating has been upgraded to Silver from Bronze due to increased conviction in its management and approach. Lead manager Dean Tenerelli is well equipped for the task at hand here, with more than 25 years of investment experience overall. He has applied his approach consistently and successfully over time, with the notable exception of 2016, as he executed certain aspects poorly. However, he had delivered strong results in a mix of different climates previously and has learnt from that tricky period. The fund, which also boasts below-average costs and a strong parent firm, has returned to form since, and we believe investors are in good hands going forward.
Downgrades
T. Rowe Price Global High Yield Bond – Silver
Jeroen Siecker
Although the fund’s broader team remains solid and its process is steady, Mark Vaselkiv’s pending departure from this strategy creates some uncertainty, supporting a downgrade of its Morningstar Analyst Rating to Silver from Gold.
