Key Takeaways
- • Morningstar released its final 2023 fund ratings update with multiple analyst-driven rating changes across mutual funds and ETFs, reflecting year-end portfolio assessment and manager evaluations.
- • M&G Japan GBP I Accumulation fund received a Bronze Medalist Rating, with managers Carl Vine and David Perrett (formerly of Port Meadow Capital Management) delivering 7.5% annualized returns since October 2019, outperforming the Morningstar Japan TME index (2.8%) and peer group benchmarks (2.4%).
- • Manulife GF Sustainable Asia Equity I share class earned a Bronze Medalist Rating with lead manager Kenglin Tan (23 years of experience, managing since April 2016) rated Average on People and Above Average on Process, though concerns exist regarding manager workload.
- • Morningstar's rating methodology continues to integrate legacy Analyst Ratings with Quantitative Ratings into a unified Medalist Rating system, with five-star distribution based on percentile performance within peer categories.
- • Recent coverage initiations and rating updates highlight Morningstar's ongoing assessment of manager quality, process distinctiveness, and performance consistency as institutional investors evaluate fund selections.
Summary
Morningstar released its final 2023 fund ratings update featuring substantive changes to its Medalist Ratings across mutual funds and ETFs. The update reflects the firm's year-end comprehensive review of manager quality, investment processes, and performance metrics conducted by its manager research analysts.
Among the notable new ratings, M&G Japan GBP I Accumulation received a Bronze Medalist Rating following initiation of coverage by analyst Jack Fletcher-Price. The fund is led by Carl Vine, who joined M&G in 2019 as co-Head of Asia Pacific equities following his tenure at Port Meadow Capital Management, a pan-Asian long-short hedge fund he founded with deputy manager David Perrett in 2014. Both managers bring extensive experience in Asian equity research despite this representing a transition to a Japan long-only mandate. Since Vine assumed management in October 2019 through October 31, 2023, the fund generated 7.5% annualized returns, substantially outperforming both the Morningstar Japan TME index at 2.8% and the Morningstar Japan large-cap peer group at 2.4%. The Bronze rating reflects Above Average People and Average Process pillars, with analyst commentary noting the distinctive strategy contains elements of intangibility that may limit conviction in its early phase as a standalone proposition.
Separately, Manulife GF Sustainable Asia Equity I share class earned a Bronze Medalist Rating under analyst Hunter Beaudoin's review. Lead manager Kenglin Tan brings 23 years of investment experience and has overseen the strategy since April 2016. The rating reflects an Average People pillar and Above Average Process pillar, though Morningstar flagged concerns regarding Tan's workload relative to her demonstrated portfolio knowledge during analyst meetings. The AA share class received a Neutral rating.
Morningstar's rating methodology integrates its legacy Analyst Ratings with Quantitative Ratings into a unified Medalist system. The distribution model allocates the top 10% of funds in each category to five-star ratings, 22.5% to four stars, 35% to three stars, 22.5% to two stars, and the remaining 10% to one star. These updates underscore Morningstar's ongoing differentiation between manager capability and process consistency as institutional investors navigate fund selection in the current market environment.
Among the notable new ratings, M&G Japan GBP I Accumulation received a Bronze Medalist Rating following initiation of coverage by analyst Jack Fletcher-Price. The fund is led by Carl Vine, who joined M&G in 2019 as co-Head of Asia Pacific equities following his tenure at Port Meadow Capital Management, a pan-Asian long-short hedge fund he founded with deputy manager David Perrett in 2014. Both managers bring extensive experience in Asian equity research despite this representing a transition to a Japan long-only mandate. Since Vine assumed management in October 2019 through October 31, 2023, the fund generated 7.5% annualized returns, substantially outperforming both the Morningstar Japan TME index at 2.8% and the Morningstar Japan large-cap peer group at 2.4%. The Bronze rating reflects Above Average People and Average Process pillars, with analyst commentary noting the distinctive strategy contains elements of intangibility that may limit conviction in its early phase as a standalone proposition.
Separately, Manulife GF Sustainable Asia Equity I share class earned a Bronze Medalist Rating under analyst Hunter Beaudoin's review. Lead manager Kenglin Tan brings 23 years of investment experience and has overseen the strategy since April 2016. The rating reflects an Average People pillar and Above Average Process pillar, though Morningstar flagged concerns regarding Tan's workload relative to her demonstrated portfolio knowledge during analyst meetings. The AA share class received a Neutral rating.
Morningstar's rating methodology integrates its legacy Analyst Ratings with Quantitative Ratings into a unified Medalist system. The distribution model allocates the top 10% of funds in each category to five-star ratings, 22.5% to four stars, 35% to three stars, 22.5% to two stars, and the remaining 10% to one star. These updates underscore Morningstar's ongoing differentiation between manager capability and process consistency as institutional investors navigate fund selection in the current market environment.
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