Morningstar OBSR downgrades Barings fund
Morningstar OBSR has downgraded the £76.3m Baring European Growth fund because of its “diminishing conviction” in the fund.
The fund managed by James Buckley has been downgraded to a ‘neutral’ rating from its previously held ‘bronze’ rating.
An analyst for Morningstar OBSR wrote: “The performance profile has been deteriorating for a protracted period of time during an admittedly difficult period for managers who rely primarily on fundamental stock analysis as their source of added value.
“We therefore believe the Morningstar analyst rating of neutral is a more suitable reflection of this fund’s merits relative to its European equity peers.”
At its latest analyst meeting, the fund ratings agency also awarded the Franklin US Opportunities fund, managed by Grant Bowers, a bronze rating.
“The rating is a reflection of our conviction in manager Grant Bowers’s ability to execute a disciplined approach to investing in US growth equities,” according to the agency.
“Since January 2009 Grant Bowers has consistently invested in companies that exhibit above-average growth potential, and while that has typically led to high levels of volatility, over time he has rewarded investors for the risks taken.”
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