Portfolio manager stability rewarded by Morningstar

Mike Taylor

Managing Editor/Publisher, Financial Newswire

28 November 2022

The importance of lead portfolio managers has been re-emphasised in the latest Australian equities sector wrap by research and ratings house, Morningstar.

The wrap saw four upgrades and four downgrades, plus new coverage extended to six funds.

The funds to be upgraded were Ausbil Australian Active Equity from Bronze to Silver, DNR Capital Australian Emerging Companies from Bronze top Silver, SGH ICE from Silver to Gold and UBS Australian Small Companies Fund from Silver to Gold.

The downgrades saw the Alphinity Concentrated Australian Share Fund downgraded from Silver to Bronze, and the following funds downgraded from Bronze to Neutral- the Fidelity Australian Opportunities Fund, the Solaris Australian Equity Long Short Fund and the Yarra Australian Equities Fund.

The importance of lead portfolio managers was emphasised by the upgrades with Morningstar pointing to its regard for Ausbil’s co-founder and Chief Investment Officer (CIO), Paul Xiradis and the experience of Yarra’s head of equities research, Katie Hudson.

Where the downgrades were concerned, Morningstar ascribed its action on the Fidelity Australian Opportunities fund to the departure of lead portfolio manager Kate Howitt which the ratings house said “lowers our conviction” in the fund.

Morningstar announced it had initiated coverage on the following products:

AB Managed Volatility Equities ETF – Silver

Airlie Australian Share ETF – Neutral

FSI Wholesale Concentrated Aus Shr – Bronze

Melior Australian Impact – Neutral

Perpetual ESG Australian Share Fd Mgd Fd – Silver

Plato Australian Shares Income – Neutral