Morningstar Asia fund reviews and re-ratings – June

Added 6th July 2016

A Blackrock fund gets an upgrade and new ratings for JPMorgan and Jupiter products.

Morningstar Asia fund reviews and re-ratings – June

The research firm’s "analyst rating" is forward-looking. On an annual basis, analysts review and if necessary re-rate the funds on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, a Neutral rating, and a Negative rating.

The analyst rating differs from the firm's backward-looking “star rating”, which assigns 1 to 5 stars based on a fund's past risk- and load-adjusted returns versus category peers.

The analyst ratings for June:

  Rating Previous rating Analysis date
BGF Asian Dragon A2 USD Bronze Neutral June 27 
JPMorgan China A-Share Opp (acc) - HKD Neutral       -- June 22
Jupiter JGF Dynamic Bd L EUR Acc Bronze       -- June 17


1. BGF Asian Dragon A2 USD

Upgraded to Bronze from Neutral. Head of Asian fundamental equities Andrew Swan is a capable investor, as seen from his stellar track records at his former role at JP Morgan and now at BlackRock. We are encouraged by a number of team improvements, notably the addition of two experienced co-heads of research, which has allowed Swan to better focus on portfolio management. Swan plays an instrumental part in setting style preferences and executing at the right time, where he has shown to be successful over a full market cycle. The fund charges reasonable fees, which furthers its appeal.

-- Germaine Share, senior analyst, manager research

2. JPMorgan China A-Share Opp (acc) - HKD 

We have assigned a Neutral after the strategy was put under review in December 2015 due to a change in lead manager. Song Shen replaced Lilian Leung as lead manager of the fund with effect from 1 January 2016. We know Shen from his former time on the JPMorgan China fund, which is focused mainly on H-shares. Shen has made several changes to the investment process, including increasing the fund’s concentration. Given Shen’s limited experience running A-share mandates, we need time to build comfort around the manager and changes to the investment process.

-- Don Yew, analyst, manager research

3. Jupiter JGF Dynamic Bd L EUR Acc

Initiated coverage with a Bronze rating. This flexible bond strategy seeks to balance capital preservation with income generation. The opportunity set for the fund is wide as it encompasses government bonds and corporate credit and, to a lesser extent, derivatives. Ariel Bezalel, the lead manager of the strategy, has been at the helm of the fund since its inception in December 2012 and brings stability and a great deal of experience to the fund. He relies on a focused team of seven analysts that has grown over the years along with the overall level of assets for the strategy. We think the manager has the necessary experience, skills and support from the credit analyst team to successfully manage this flexible strategy.

-- Carlos Lucar, analyst, manager research 

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