Morningstar’s fund analysts assigned a Gold rating to two funds this week: Yacktman (YACKX) and Litman Gregory Masters Intl Instl (MSILX).
According to analyst William Samuel Rocco, Litman Gregory Masters International just dropped one subadvisor (Mastholm Asset Management) from its lineup--and is likely to add a new one before too long--but its ample long-term appeal remains intact. “There are several reasons to be quite confident about this fund's current lineup,” he wrote.
“This fund's portfolio will continue to be wide ranging and distinctive without Mastholm: The five remaining managers employ disparate strategies; they all consider more than the usual suspects and have the courage of their convictions; and Litman Gregory limits them to nine to 15 picks each.”
Morningstar’s Kevin McDevitt, wrote that Yacktman's announced sale to Affiliated Managers Group “ensures long-term continuity as the fund's three managers signed 10-year employment agreements. Crucially, the team also retains full investment authority, so there should not be any change in the fund's strategy. Management plans to reinvest some of the deal's proceeds back into the business. For example, they recently doubled their office's square footage to make room for future analyst hires.”
No funds received a "Negative" rating during the week.