“The CFS Global Emerging Markets Select Fund was upgraded to five stars from four stars. The fund, which is contrarian, benchmark-unaware, and relatively unconstrained, has delivered impressive results since its inception. Its global emerging-markets investment team represents the strongest investment team in our rated peer group,” stated Simone Gavin, analyst at S&P Fund Services. 

“Despite S&P’s high regard for the Schroders’ emerging-markets team, the capability is being downgraded to four stars from five stars. This is due to process changes and other issues that have arisen since our last review in 2010, and we believe these could hinder future performance.” 

“The majority of funds reviewed received a three-star rating, with only the one fund achieving a rating of five stars. Team and process changes have constrained our conviction in some three-star rated funds,” added Ms Gavin. 

The Walter Scott Emerging Markets Fund and the Realindex Emerging Markets Fund are newly rated by S&P. Both funds received a three-star ‘NEW’ rating. The Invesco Asian Consumer Demand Fund (formerly the Invesco Asian Share Fund) changed from a broad sector-based product to a thematic consumer demand fund, and also received our three-star ‘NEW’ rating. 

The Hunter Hall Asian Value Trust was rated earlier and assigned three stars in September 2011. It was placed ‘On Hold’ in November 2011 following Jack Lowenstein’s departure from the team. The ‘On Hold’ rating is now resolved and the fund has received a two-star rating in this release. The rating reflects the limited Asian emerging-markets investment experience of the small team. 

Two ‘On Hold’ ratings are retained; these apply to the AMP Capital Asian Equity Fund and the ING Global Emerging Markets Share Fund. Due to likely changes to both funds, we are not currently in a position to resolve the ‘On Hold’ ratings.

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