Man GLG Undervalued Assets rated ‘Silver’ at Morningstar
The Man GLG Undervalued Assets fundhas been upgraded to a ‘Silver’ rating via the Morningstar Analyst Rating methodology, the funds data and services provider has said.
Samuel Meakin, manager research analyst at Morningstar, identified a number of factors that led to the fund being upgraded from its previous ‘Bronze’ rating.
“The strategy is managed according to a highly disciplined investment process, which has been executed diligently and consistently over time by the team, both at Man GLG and in its previous guise at Matterley. The team is headed up by Henry Dixon and it has bedded in well since its move to Man GLG in October 2013, which has helped to increase our level of conviction in the fund.”
The strategy of the fund is described by Man GLG as investing in companies “for a price that is below the team’s calculation of either the company’s replacement cost, or intrinsic value as determined through earnings figures. Furthermore, the fund demands that businesses trading belwo replacement cost are cash generative. Cash generation…allows businesses time to weather the investment cycle and as weaker competitors leave the industry it allows the strong to get stronger and ultimately become more profitable.”