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S&P reviews international equities sector

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By Reporter
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2 minute read

S&P Fund Services has rated the hedged version of the Walter Scott Global Equity Fund five stars, while it awarded four stars to the T Rowe Price Global Equity Trust and the Principal Global Equity Growth Fund.

These funds were previously unrated.

The rating on the MFS Global Growth Trust has been withdrawn.

The ratings of international equity growth funds are part of a wider review of the international equities sector, and the research house will continue to publish its findings over the next few months.

T Rowe Price, Principal and the hedged version of the Walter Scott Global Equity Fund were added to the review following Aberdeen's acquisition of Credit Suisse Asset Management, S&P fund analyst Simone Arblaster said.

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All funds in the growth peer group produced negative returns for the three-year period to 31 May.

However, this can be seen as a result of the difficult market conditions, and all of the previous fund ratings have remained stable.

From May 2007, growth appeared to be overtaking value funds.

"At this point, many thought it was growth's turn to take a leading role after years of trailing its value counterpart," Arblaster said.

"Unfortunately, this has been short-lived and both styles were hit by losses of similar magnitude in the calendar year of 2008."

However, growth had recovered and performed more strongly in the year to August 2009, Arblaster added.