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Fund Spy: Morningstar Medalist Edition

Manager Changes Spur Ratings Changes

One downgrade and two upgrades in the wake of these funds' shifts at the top.

Mentioned: , , , ,

Management is always a big part of the story for an actively managed mutual fund. Three recent changes in managers spurred us to change a fund's Morningstar Analyst Rating.

At  PIMCO Global Multi-Asset (PGAIX), PIMCO made some changes in response to the fund's disappointing performance. The idea is for the fund to offer wide-ranging asset exposure with a strong emphasis on downside protection. Not only is the fund supposed to move away from riskier asset classes, but by using tail-risk hedging, it is supposed to backstop losses. Given that cautious nature, it's not a surprise the fund lagged given the powerful rally in U.S. equities over the past few years. However, the degree of its underperformance and some ill-timed moves disappointed PIMCO and us at Morningstar.

Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.