BlackRock fund downgraded by Morningstar OBSR

Morningstar OBSR has downgraded the BlackRock Global Funds Global Opportunities fund over performance concerns.

The fund has been downgraded from a Bronze to a Neutral rating, after conviction in the fund’s management team dropped.

“The fund’s performance has struggled in recent years as the portfolio has moved higher up the market cap scale,” reports Morningstar OBSR.

“As such we have less conviction in the team’s ability to add value over the long term and believe that a Neutral rating better reflects our conviction at the current time.”

The F&C Indian Investment Company has also been downgraded from a Bronze to a Neural rating based on its “relatively high total expense ratio”.

The fund rating agency warns the high costs are proving to be a “structural disadvantage” and outperformance has not been commensurate with the charges.

The Franklin US Government fund has been downgraded from Silver to Bronze, over its total expense ratio and its narrow focus on mortgage-backed securities issued by the US Government National Mortgage Association.

However, the Henderson Horizon Euro Corporate Bond fund has been awarded a Bronze rating at the most recent meeting of the fund ratings agency analyst meeting.