Wells Fargo Absolute Return invests directly in GMO Benchmark-Free Allocation. A tried and tested management team that has invested through numerous boom and bust cycles leads the strategy, but missteps in recent years have dampened some conviction in their approach, resulting in a downgrade of the Process Pillar to Average from Above Average. This drives a Morningstar Analyst Rating downgrade to Neutral from Bronze for the strategy's three cheapest share classes; the three most expensive remain Neutral as well.
Will WARAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable WARAX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the WARAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of WARAX’s parent organization’s priorities and whether they’re in line with investors’ interests.