Morningstar downgrades Schroder UK Equity Acc fund

Morningstar has downgraded its qualitative rating for the Schroder UK Equity Acc fund from Superior to Standard. 

Morningstar fund analyst Tom Whitelaw comments: "We have downgraded Schroder UK Equity Acc from superior to standard.  The downgrade is no slight on the incoming management team, but this is the first time they have run money together. Although the analyst input is unchanged, we want to see the new managers develop their partnership before our confidence increases."

Funds to receive new Morningstar ratings this week include AXA Framlington UK Select Opportunities Acc - rated Elite; and Rensburg UK Select Growth Trust Inc - rated Standard.

Tom Whitelaw comments: "AXA Framlington UK Select Opportunities Acc is run by a top manager in Nigel Thomas. With almost 25 years running money in a similar fashion, he has seen numerous market cycles and is not afraid to follow his conviction to make investors money. He also benefits from strong backing at parent group AXA Framlington.

"Rensburg UK Select Growth Trust Inc is not the fund it once was. In the early 2000s, this fund was predominately invested in small caps where it prospered. As assets increased, the fund moved up the cap ladder where the fund manager has struggled to find the same kind of opportunities that led to such staggering performance previously. Nevertheless, it shouldn't blow up, and it achieves our Standard rating, but investors shouldn't expect a repeat of past heroics."