Six Morningstar funds receive five crown rating

Morningstar Investment Management  is being named as one of the best performers over the last three years, with six of its funds being awarded a five-star rating, according to Money Management’s new Crown Ratings powered by FE.

The funds that were awarded with a Five Crown ratings were: Morningstar High Growth Fund, Morningstar Growth Fund, Morningstar Growth Real Return Fund, Morningstar Multi Asset Real Return Fund, Morningstar High Growth Real Return Fund and Morningstar Balanced Fund.

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The other fund managers that turned out to be top performers included Perpetual Investment Management which saw seven of its funds receiving the top-most ratings while IOOF Investment and Macquarie Investment Management had six funds which received five Crown rating and both Fiducian and Investors Mutual saw five of its funds being granted the top score.

Morningstar Investment Management’s chief investment officer, Andrew Lill said the firm tended to take a long-term valuation-driven approach when thinking about asset classes and portfolio management.

He said the funds’ performance was also helped by the three major events that took place over the past 18 months including plummet in the oil price in February 2016 which allowed the company to “buy a lot of large world oil companies at that time at very attractive valuations.”

“In June, 2016 the surprising Brexit vote happened in the UK and again investors became very negative in the short-term perspective,” Lill said.

He stressed that the potential impact of the UK leaving the European Union again helped the company buy assets at attractive prices and benefit from the sell-off of the European financial companies.

Following this, the US election and Trump’s win again made the emerging markets very attractive from assets perspective.

“It was really the preparedness to investor times in 2016 when a lot of investing world was negative  [which has led to 2017]. Because of we bought assets at cheap prices when the strong equity markets have come back, then we’d been able to really get the benefit of that,” Lill said.