Invesco Upgrade Tops Our Ratings Changes for September
You already know what happened to PIMCO Total Return.
Fund Spy: Morningstar Medalist Edition
September was a quiet month for changes to Morningstar Analyst Ratings. Right up until Sept. 26, that is.
Bill Gross’ shocking exit led us to put all PIMCO funds under review. We lowered PIMCO Total Return (PTTRX) to Bronze from Gold in September and are working our way through the rest of the PIMCO funds. You can watch for new PIMCO ratings on this page.
As we’ve already covered PIMCO above, I will focus on other ratings changes in September.
Franklin Flex Cap Growth
We lowered Franklin Flex Cap Growth to Neutral from Bronze in response to the long slow decline in performance since the fund broadened its mandate in 2003. The fund has lagged the Russell 3000 Growth Index over that period in part because of some weakness in 2011 and 2012 around tech and energy picks.
Invesco International Growth
We raised our rating to Silver from Bronze on Invesco International Growth (AIIEX) as we’ve become more comfortable with changes made in 2011. At that time the fund switched from a comanager approach to a lead with Clas Olsson making the final call on investments. It’s an experienced team, and things have functioned smoothly since the 2011 change. Performance, strategy, and the team itself have continued to look a lot like before, and that’s good news for a fund with a strong long-term track record. True to form, it has held up better in down markets when its cautious leaning helped out. The fund seeks out companies with sustainable growth and modest valuations and debt levels. That’s worked quite nicely over the years.
TFS Market Neutral
We took this fund down a notch to Silver from Gold. Obviously, we still are fans of TFS Market Neutral , but the risks of its shorting strategy prompted the downgrade. The fund suffered in 2013 as its shorts in less-liquid names really hurt the fund in a market rally. Overall, we still like the fund’s quantitative model-driven approach and its long-term record. Management has also proved to be a good steward.
For a list of the open-end funds we cover, click here.
For a list of the closed-end funds we cover, click here.
For a list of the exchange-traded funds we cover, click here.
For information on the Morningstar Analyst Ratings, click here.