Morningstar identifies new fund rating prospects

Mike Taylor

Managing Editor/Publisher, Financial Newswire

5 September 2022

Three new funds have made it onto the so-called “Australia Prospects” prospects list of research and ratings house, Morningstar.

The “Australia Prospects” is a list of what Morningstar regards as  promising investment strategies that it believes may be worthy of greater investor attention, but which are not yet covered by Morningstar Manager Research.

The three new strategies include the Ausbil Australian SmallCap fund, the Chester High Conviction Fund and the GMO Climate Change Trust.”

Morningstar head of research ratings Annika Bradley said that since its last edition of the Australia Prospects list, the company had added three strategies and have seen five strategies graduate into full coverage within its 2022 review cycle.

The five strategies to have graduated to full coverage include JPMorgan Global Macro Sustainable; Pendal Sustainable Australian Fixed Interest; Trillium ESG Global Equity; Macquarie Real Return Opportunities and Skerryvore Global Emerging Markets All-Cap Equities.

“Our analysts are always on alert for strategies that may deserve a wider audience and full qualitative research coverage,” Bradley said.

The strategies that make it onto the Morningstar Prospects include some or all of the following characteristics:

• Existing strategy/new manager: A previously unappealing fund gets a promising new leader, team, or strategy.
• New strategy/experienced manager: A manager with a long, impressive track record elsewhere or a firm with established expertise launches a new fund.
• Under-the-radar manager: A strategy with a long track record that has not yet attracted attention or assets.
• Unique Process/strategy: A manager that offers a distinctive approach.

“Every six months we update our list of Prospects. Some strategies may graduate to full analyst coverage,” she said.

“Others won’t make the cut and could be dropped from the list because their fundamentals deteriorate, there are material and negative changes, or they are unlikely to graduate in the near future.”