OBSR reveals ratings changes
Share
Old Broad Street Research (OBSR) has removed the A ratings of two Skandia funds and one from JP Morgan, and excluded them from the ratings service.
The Skandia Diversified fund had its A rating suspended in May last year when it was announced that the Skandia Cautious fund was to be renamed the Skandia Diversified fund, and given wider investment powers enabling the use of alternative assets.
Skandia UK Best Ideas lost its rating as it has not consistently met its investment objective since 2007
Subsequently, the Skandia Balanced fund was merged into this new fund.
In a statement, OBSR says the new fund has got off to a promising start, but given the scope of the changes it is too early to get the necessary level of conviction required for a rating.
Skandia UK Best Ideas lost its rating as it has not consistently met its investment objective since 2007. OBSR says Skandia has taken steps to address this by having fewer managers selecting stocks for the fund.
OBSR says that given the extent of the underperformance and the nature of the change, the fund needs to demonstrate that this course of action has arrested the underperformance.
It has also removed the A rating held by the JPM JF India fund and withdrawn it from the service. OBSR says the fund’s investment process considers both bottom-up and top-down analysis. According to OBSR, the portfolio of the JPM JF India fund is well diversified with a bias towards large- and mid-cap stocks. (article continues below)
However, OBSR says, performance has been “disappointing” owing to the fund’s flexible investment style, and it has struggled to keep up with the index and the peer group.
OBSR awarded new A ratings to the following: the Baring Hong Kong China fund, the BNY Mellon Long Term Global Equity fund, the CAAM Funds Brazil fund and the GAM Star US All Cap Equity fund.
It also awarded A ratings to the HSBC GIF Brazil Equity fund, the HSBC GIF Latin American Equity fund and the HSBC GIF Russia Equity fund, the M&G Global Growth fund and the Martin Currie GF Global Resources fund, all of which had no rating before.
Both the Veritas Global Income fund and the Veritas Global Focus fund had their ratings upgrated from A to AA.
The Morgan Stanley (INVF) Emerging Europe Middle, East & Africa Equity fund had its rating downgraded from AA to A.
Note: This story was updated at 11:55.
