Baring Hong Kong China downgraded on size concerns

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Morningstar OBSR has downgraded Agnes Deng’s $2.3bn (£1.5bn) Baring Hong Kong China fund owing to concerns over the portfolio’s size.

The Dublin-domiciled Oeic previously held Morningstar Analyst Rating of bronze but this has been downgraded to neutral in the analyst’s most recent change.

A note says: “Although Morningstar OBSR is confident in portfolio manager Agnes Deng, it believes the execution of the investment process is somewhat hampered by the fund’s large size.

“Combined with a relatively unstable analyst team and lack of a supportive long-term track record, Morningstar OBSR believes a neutral rating better reflects the fund’s capabilities.”

Baring Asset Management declined to comment on the downgrade.

Launched in December 1982, the fund’s assets under management peaked at around $10bn in November 2007 but its decline since has been broadly in line with fall seen in the Chinese stockmarket.

Baring Hong Kong China’s performance by calendar year

  YTD 2012 2011 2010
Baring Hong Kong China 3.83% 7.41% -19.09% 6.44%
5.30% 13.27% -21.88% 14.08%
-1.40% -5.17% 3.58% -6.70%

Source: FE Analytics