Morningstar upgrades JB Were

Morningstar has upgraded JB Were Investment Management’s star rating from three to four stars.

JB Were now joins the ranks of other four star performers such as AMP, Merrill Lynch, MLC and Rothschild. Four stars denotes a "very good" quality manager, as opposed to the "good" tag associated with a three star rating.

Morningstar says the increased composite quality of the star ratings for JB Were's funds enabled JB Were to move up a star.

The research house says JB Were is well above average in terms of its individually rated funds. Seventy-three per cent of JB Were's funds under management is in four or five star funds as at March 31 this year, compared to the industry average of 35 per cent, the research house says.

Across the various criteria that Morningstar uses to rate the funds, JB Were had an improved corporate strength rating due to its business reorganisation and doubling of staff, which the ratings house contributed largely to its improved overall rating.

Meanwhile, its administration and distribution rating actually plummeted from above average to well below average due to what Morningstar has identified as JB Were's relative weakness in IT system administration.

Similarly, JB Were's investment management rating fell slightly below average from an average position. However, its sector strength rating increased from 8.01 at December 31, 2000 to 8.51 at 31 January, 2001.

Morningstar says JB Were's asset allocation process has a clear focus on fundamentals, which is adding value while minimising transaction costs.