Latest Fund Upgrades
JPM UK Equity Core E Net Acc - Gold from Bronze
Henry Ince
JPM UK Core equity provides low-cost, low active share exposure to UK equities. The approach is well-defined and effectively combines JPM’s robust quantitative capabilities with a human overlay. We upgrade it to Above Average from Average, recognizing its consistent ability to deliver on its mandate and outperform active competitors over multiple time periods, even if substantial outperformance relative to the index remains unlikely. The People score is maintained at Above Average. This change has resulted in an upgrade of the Morningstar Medalist Rating to Gold from Bronze for the clean E Net Accumulation share class.
MFS Meridian Prudent Capital W1 USD - Gold from Silver
Thomas De Fauw
We are upgrading MFS Meridian Prudent Capital and MFS Meridian Prudent Wealth’s People Pillar rating to High from Above Average to reflect our increased confidence in the management team. This strategy is in good hands, despite the retirement of its original architect and lead manager Barnaby Wiener in April 2024. It is led by Edward Dearing, Shanti Das-Wermes, and David Cole. While their average track records are shorter, they boast strong credentials, team dynamics are solid, and the three managers continue to benefit from the firm’s cohesive culture with access to MFS’ impressive global research capabilities. This remains a strong offering for investors seeking risk-conscious exposure to global stocks.
TR Property Investment Trust TRY - Gold from Bronze
Thomas De Fauw
A highly experienced manager backed by a strong team, combined with a well-designed and consistently applied investment approach, continues to drive our positive conviction in TR Property investment trust. We are upgrading our Process Pillar rating to High from Above Average to reflect the strategy’s distinctive investment approach. This remains a strong option in European real estate.
New Fund Ratings
JPM Eurozone Research Enhanced Index Equity Active UCITS ETF - Gold
Natalia Wolfstetter
Despite tight constraints, a capable portfolio manager and J.P. Morgan’s analytical firepower supporting a well-designed approach give JPMorgan Eurozone Research Enhanced Index Equity Active UCITS ETF an edge. We initiate coverage with Above Average ratings for both People and Process. Piera Elisa Grassi has led the strategy since its launch in April 2022. She has led the global variant of J.P. Morgan’s research-enhanced index active exchange-traded fund range since its launch in October 2018 and the European variant since May 2019. Grassi joined J.P. Morgan in 2004, began managing money in 2007, and has been heading the global research enhanced index team since 2014. The team consists of seven portfolio managers who boast extensive industry experience and firm tenure. J.P. Morgan’s deep fundamental research teams are crucial to the strategy’s success.
Grassi leverages their insights to construct the portfolio with a highly systematic approach, drawing on her strong background in quantitative analysis and risk management. The approach combines elements of index and quantitative active investing, incorporating the fundamental research insights of J.P. Morgan’s analyst teams to enhance returns relative to a passive approach while keeping risks in check. These insights are then integrated into a portfolio with limited deviations from the respective benchmark by applying small overweight or underweight positions at the stock level while aiming for neutrality at the region, sector, or style levels. The portfolio is broadly diversified across roughly 100 holdings, and the resulting active share tends to be around 25%.The strategy’s track record is still relatively short, but since its launch in April 2022, risk-adjusted returns have matched the benchmark, and it ranks in the top quartile of the eurozone large-cap equity Morningstar Category.
