Veritas and JP Morgan funds downgraded by Morningstar OBSR

Ezra Sun’s Veritas Asian fund and the JP Morgan Europe Smaller Companies fund have both been downgraded by Morningstar OBSR following the latest analyst meeting.

Despite the agency’s “high regard” for fund manager Sun, the Veritas Asian fund was downgraded to silver status.

“The period since 2008 has been especially difficult for fundamental stock pickers given the dominance of macroeconomic and political concerns,” writes the agency.

“Notwithstanding this, we believe that the performance outcome for the combination of long-term investments with shorter-term trading ideas of this portfolio has been somewhat disappointing for investors and we therefore believe a silver rating to be more appropriate.”

The JP Morgan Europe Smaller Companies fund was downgraded to bronze status after the investment process was changed to a higher conviction model.

The fund rating agency says the downgrade was appropriate while the amended process is implemented.

The Fidelity Emerging Markets fund, managed by Nick Price, has been awarded a bronze rating, as has the Investec Enhanced Natural Resources, co-managed by Bradley George and George Cheveley.

The JP Morgan US Equity Income, Somerset Emerging Markets Dividend Growth and Cazenove Multi Manager Diversity funds have all also been assigned bronze ratings.