Morningstar OBSR has downgraded Agnes Deng’s $2.3bn (£1.5bn) Baring Hong Kong China fund owing to concerns over the portfolio’s size.
The Dublin-domiciled Oeic previously held Morningstar Analyst Rating of bronze but this has been downgraded to neutral in the analyst’s most recent change.
A note says: “Although Morningstar OBSR is confident in portfolio manager Agnes Deng, it believes the execution of the investment process is somewhat hampered by the fund’s large size.
“Combined with a relatively unstable analyst team and lack of a supportive long-term track record, Morningstar OBSR believes a neutral rating better reflects the fund’s capabilities.”
Baring Asset Management declined to comment on the downgrade.
Launched in December 1982, the fund’s assets under management peaked at around $10bn in November 2007 but its decline since has been broadly in line with fall seen in the Chinese stockmarket.
Baring Hong Kong China’s performance by calendar year
|Baring Hong Kong China||3.83%||7.41%||-19.09%||6.44%|
Source: FE Analytics