Andrew Daniels: Bronze-rated Wells Fargo International Equity benefits from a well-codified approach and a complementary management team. Comanagers Dale Winner and Venk Lal seek firms that are undervalued relative to their long-term normalized profit levels. When the team finds a compelling investment opportunity, but is concerned about country-specific risk, it will tactically hedge that currency exposure. Wells Fargo does not place significant country- or sector-exposure constraints on the fund, so expect it to look quite distinct from its benchmark.
Winner's background as a bottom-up stock-picker combined with Lal's background as a top-down risk management strategist make them solid counterparts here. The fund has been a solid performer since the team took control in 2012. In fact, during the trailing five-year period ended July 2017, the fund has outperformed its benchmark by more than 2 annualized percentage points as well as 86% of its foreign large-blend peers.
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Andrew Daniels does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.