Morningstar Germany withdraws analyst rating for flagship funds

Morningstar Germany has ceased to rate a number of blockbuster funds in the German market, citing lack of confidence in their ability to perform, as German publication Fonds professionell reports.

This affects among others the €6bn Ethna Active fund, and Carmignac’s Investissement fund, which currently manages almost €5bn in assets. It also includes the DWS Vermögensbildungsfonds I and Union Investment’s €4.5bn Uni-Global Fund, all funds have faced performance issues.

The decision is due to a change in Morningstar’s rating focus, which now prioritises the prospects of investment merits rather than the overall volume of the fund, Fonds professionell reports.

In addition, Morningstar will now increasingly focus on multi-asset and alternative investment funds, while reducing the number of equity funds in its coverage, as Natalia Wolfstetter, director Fund Analysis at Morningstar confirms to InvestmentEurope.

Moreover, the rating is only applicable 12 months after the publication of the latest rating report, as a result, some funds, including the UniGlobal and DWS Vermögensbildungsfonds I, continue to be rated neutral until December 2017.

Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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