11 New Funds in Morningstar Prospects
Morningstar Prospects showcases 11 new funds with promising futures ahead.
Editor's note: The report is available to Morningstar Direct and Office users.
Connor Young: We recently added 11 strategies to Morningstar Prospects, a list of up-and-coming or under-the-radar managers.
The additions include four strategies with environmental, social, and governance, or ESG, approaches. Calvert Equity and Brown Advisory Sustainable Growth effectively combine ESG mandates with large-growth investment styles. iShares ESG U.S. Aggregate Bond ETF and TIAA-CREF Green Bond are among a growing number of fixed-income ESG offerings. The iShares product provides a low-cost passive option, while TIAA-CREF Green Bond is unique for its focus on investments that have a direct ESG impact rather than simply screening on ESG criteria or considering those factors during the usual investment process.
The Prospects lists includes other compelling strategies. Alger Mid Cap Focus, Chiron Capital Allocation, Brown Advisory Mid-Cap Growth, AllianzGI Performance Fee Structured U.S. Equity, and AllianzGI Performance Fee Structured U.S. Fixed Income are all relatively new offerings from proven managers. Amy Zhang, manager for Alger Mid Cap Focus, has steered Alger Small Cap Focus to an excellent record since 2015 and previously contributed to solid results at Gold-rated Brown Capital Management Small Company. Ryan Caldwell, lead manager for Chiron Capital Allocation, had success at Waddell & Reed before he brought that approach here in 2015. George Sakellaris and Christopher Berrier apply the same process at Brown Advisory Mid-Cap Growth that they have honed at Brown Advisory Small-Cap Growth since 2006 and at a mid-cap growth separate account since 2012. Last, Greg Tournant's options-based strategy at AllianzGI Performance Fee Structured U.S. Equity and Fixed Income funds is similar to what he has used at Bronze-rated AllianzGI Structured Return.
The remaining two Prospects additions, MFS Mid Cap Value and Muzinich Credit Opportunities, are a bit more established than most others on the list, with solid medium- or long-term records from talented and well-resourced teams.
Again, our Prospects list is intended to draw attention to promising funds we don't yet cover. The 11 strategies I've just mentioned are the newest additions to that list. We'll update this list again this summer.
Connor Young does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.