S&P affirms ratings on 25 global emerging market funds
Standard and Poor's Fund Services (S&P) has affirmed the ratings of 25 global emerging-market capabilities across three peer groups of global emerging markets, Asia (excluding Japan), and single country (including China and India).
Among the 27 global market funds reviewed, CFS Global Emerging Markets Select Fund (CFS Global) achieved the highest rating after being upgraded from four to five stars.
Commenting on the upgrade, S&P analyst Simone Gavin said the CFS Global fund was contrarian, benchmark-unaware, and relatively unconstrained, while its emerging-markets investment team represented the strongest team in the rated peer group.
Schroder's emerging-markets team was downgraded from five to four stars, with Gavin pointing to process changes and a number of other issues that could hinder future fund performance.
"Team and process changes have constrained our conviction in some three-star rated funds," Gavin added.
Funds that received a three-star 'New Rating' were the Walter Scott Emerging Markets Fund, the Realindex Emerging Markets Fund and the Invesco Asian Consumer Demand Fund.
The current sector review saw the Hunter Hall Asian Value Trust - previously placed 'on hold' by S&P in November 2011 following the departure of former Hunter Hall chief investment officer Jack Lowenstein - receive a two-star rating. This reflected the limited Asian emerging-markets investment experience of the small team, S&P stated.
Meanwhile, two 'on hold' ratings have been retained for both the AMP Capital Equity Fund and the ING Global Emerging Markets Share Fund.
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