- Four new ratings, including one Responsible A rating
- One rating reinstated
- Seven ratings retained
- One rating suspended; one removed, pending further review
Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 46 interviews with investment professionals from 24 asset management groups over the course of August 2021. Based on the intelligence gained at these meetings, the following actions have been taken.
New ratings
Jupiter Corporate Bond fund awarded A Rating
Square Mile’s team of analysts have awarded the Jupiter Corporate Bond fund an A rating. They consider this fund to be an attractive offering for investors seeking exposure to the sterling corporate bond market. In particular, they note the active, value-driven approach employed by the fund’s co-managers Adam Darling and Harry Richards. Since taking over in May 2018, they have continued to build a promising track record, extracting alpha from their top-down views and the bottom-up selection, supported by an extended team of credit analysts. (Decision as at 23.08.21)
Premier Miton UK Growth fund awarded A Rating
Square Mile has awarded the Premier Miton UK Growth fund an A rating. The team of analysts believe that co-managers, Jon Hudson and Benji Dawes, have developed a well thought-out, clear and disciplined investment approach. This successfully integrates their individual skill sets and nuances in their investment styles. The managers are bottom-up stock pickers who aim to construct a portfolio of high quality, growth stocks at attractive valuations. Whilst the managers’ track record on this strategy has been strong to date, Square Mile believes the fund is suitable for investors with some risk tolerance, given both the performance aspirations and the market capitalisation composition of the portfolio, which has a clear a preference for small and medium-sized companies.
Square Mile’s analysts consider this to be a rewarding strategy for long-term investors seeking a truly actively managed UK equities fund, but who are also willing to accept a higher level of volatility than the FTSE All Share index, particularly over shorter time periods. (Decision as at 20.08.21)
PIMCO GIS Dynamic Multi-Asset fund awarded A Rating
Square Mile has introduced the PIMCO GIS Dynamic Multi-Asset Fund into the Academy of Funds with an A rating. This is a very flexible and dynamic multi-asset fund which invests in a broad range of securities and which is able to invest substantially in financial derivative instruments. It is managed by an experienced global macro investor, Geraldine Sandstrom, who has applied her investment approach consistently for many years, and who now is able to leverage the strong global resources at PIMCO. Square Mile therefore believes this fund has the potential to provide good risk-adjusted returns and meet its objectives over the long term. (Decision as at 10.08.21)
LF Montanaro UK Income fund awarded Responsible A Rating
Square Mile’s team of analysts have awarded the LF Montanaro UK Income fund a Responsible A rating. They believe that the firm-wide investment philosophy at Montanaro Asset Management is wholly sensible. This centres around making investment simple by identifying the best sustainable quality small and mid-cap growth companies, with the intention of holding them for the long term. This is further bolstered by the solid performance of this fund’s offshore sister strategy, which has been run along identical lines since December 2012, and the complementary skill sets of the co-managers, Charles Montanaro and Guido Dacie-Lombardo, who Square Mile’s analysts believe successfully blend youth and experience.
Square Mile considers this to be an attractive strategy for investors seeking to diversify their UK equity income streams away from large, blue chip companies, who would like ESG considerations to be fully integrated into their investments, and who are willing to accept higher volatility than the FTSE All Share index over shorter time periods. (Decision as at 09.08.21)
Rating reinstated
Janus Henderson UK Property PAIF Recommended rating suspension listed
Square Mile has lifted its suspension of the Recommended rating of the Janus Henderson UK Property PAIF. Janus Henderson suspended dealing in the fund on 16.03.2020 and it remained closed until 24.02.2021. Despite this, Square Mile maintained the rating suspension in order to monitor the fund’s progress and observe how the team at Janus Henderson would handle potential outflows upon reopening the fund to investors. Cash in the fund at the at the end of July stands at 16.5% and Square Mile’s analysts are comfortable with the liquidity management undertaken by Janus Henderson. They have therefore reinstated the Recommended rating of the fund. (Decision as at 17.08.21)
