These funds from a variety of managers have recently been added to the Morningstar Prospects Report.

This is a half-yearly list of equity funds Morningstar manager research experts regard as holding significant competitive advantages and long-term appeal, though without having so far met Morningstar's criteria for full research coverage.

“One aim of our independent qualitative research is to determine which investments deserve the attention of investors and advisers, and which do not,” Chris Douglas, Morningstar Director Manager Research Ratings Asia-Pacific.

He explains that his team "designates the most promising candidates on our research ‘bench’ as Morningstar Prospects."

There have been many changes this time around, with the following new prospects added in the past six months:

1. Barrow Hanley Global Equity Trust (41377)
Distributed by BNP Paribas Asset Management, this is a high-conviction global equity strategy that follows a value style with a fundamental, bottom-up approach.

2. Bell Global Equities (41458)
This fund invests in companies of various sizes, with a focus on quality names, and is run by Bell Asset Management.

3. BMO LGM Global Emerging Markets (40940)
This emerging market equities portfolio provides exposure to frontier markets--developing countries that are too small or undeveloped to be considered alongside emerging markets. With a bias toward small-cap companies, it is offered for an attractive fee.

4. CFM IS Trends Trust (41834)
New to the Australian market but backed by an experienced team at Paris-based asset manager CFM.

5. CC JCB Active Bond (41406)
An Australian bond fund run by experienced portfolio managers, Charles Jamieson and Angus Coote, it invests in high-quality Australian fixed income, excluding credit securities.

6. Lazard Global Equity Franchise (41079)
With a valuation-driven investment process, this fund invests in economic franchises, making it quite a concentrated portfolio. It's run by an experienced portfolio management team that has been in place since 2013.

7. Lennox Australian Smaller Companies (41754)
A new fund that looks for high quality stocks, it has a small asset base, and is run by experienced managers Liam Donohue and James Dougherty.

8. Schroder Equity Opportunities (16744)
With a focus on business quality and valuation, this is a diversified portfolio of small- , mid- and large-cap companies, run by respected portfolio managers Martin Conlon and Andrew Fleming. One caveat: it is slightly expensive.

9. Vanguard Global Quantitative Equity (41592)
This fund takes a quantitative approach to invest in companies believed to offer strong growth potential at a reasonable price. A low 0.35 per cent fee adds appeal.

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Glenn Freeman is a senior editor at Morningstar.

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