The Morningstar Rating Analysis of Investment Funds identifies the strengths and weaknesses of the open-end fund offering and the management companies that market them. Based on the Morningstar Rating, or star rating, this analysis is a quantitative assessment of historical performance. That is to say that it does not serve as a future projection, but as a first step in the process of evaluating funds, underline Thomas Furuseth and Ali Masarwah, authors of this Morningstar study.
Morningstar constructs its analysis in two ways: equally-weighted and asset-weighted. The data covers the second quarter of 2019, which ended on June 30, 2019.
The equally weighted method classifies management companies according to their average Morningstar Rating, regardless of the size of the assets under management. The asset-weighted method also takes into account the volume of assets under management. You’ll find the total score in this column, but we also break down the asset-weighted score into the broad wealth categories of stocks, bonds and underlying allocations. We also indicate the percentage of managed assets that is invested in funds rated 4 or 5 stars by Morningstar.
The largest fund houses
Here is the list of the 35 largest wealth managers in Europe, ranked according to the volume of wealth under management:
The best fund houses
We then order the list according to the highest equally weighted rating. In this ranking, Pimco is at the top, with an average Morningstar Rating of 3.67. Pimco was also in first place in the previous ranking (that of the first quarter of 2019), with a score of 3.83.
Fund house name Asset valued in millions of euros Equal weighted score Asset Weighted Rating – All Asset Weighted Rating – Equities Asset-weighted rating – Bonds Asset Weighted Rating – Allocation Asset-weighted rating – % of assets 4 and 5 stars
The Best Small Fund Houses
In addition to the large management companies, Morningstar also establishes the ranking of the small management companies. These are funds with assets under management of between 5 and 40 billion euros, and made up of at least 10 share classes.
The top two names on this list, Fundsmith and Lindsell Train, also held the top two spots on the list for the previous four quarters. Here is the overview of these small management companies:
Choice between more than 60 renowned management companies at MeDirect
Very practical, our fund browser allows you to consult the complete list of management companies. Most of the aforementioned management companies are available on the MeDirect investment platform: Blackrock, Amundi, Fidelity, DWS, Schroders, Nordea, JPMorgan, Pimco, BNP Paribas, Allianz Global Investors, M&G, Invesco, Franklin Templeton, Pictet.
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