- 18 investment trusts enter the Academy of Funds in first tranche
- Two ratings reinstated
- Four ratings removed
Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 60 interviews with investment professionals from 41 asset management groups over the course of October 2023. Based on the intelligence gained during these meetings, and following reviews in the light of corporate announcements, the following actions have been taken.
New ratings
18 investment trusts enter Academy of Funds as Square Mile rolls out investment trust research
Square Mile’s team of analysts have admitted 18 investment trusts and companies into the Academy of Funds as their research into these investment vehicles is made public for the first time. At launch, seven investment trusts have been awarded AA or Responsible AA ratings, with 11 receiving A or Responsible A ratings, as follows:
| AA ratings | A ratings |
| Baillie Gifford Japan Trust Fidelity European Trust Monks Investment Trust Personal Assets Trust Schroder Oriental Income City of London Investment Trust | Abrdn UK Smaller Companies Growth Trust Bailie Gifford Shin Nippon Investment Trust Fidelity Special Values Finsbury Growth & Income Trust Invesco Asia Trust JPM Global Emerging Markets Income Trust Polar Capital Global Technology Trust Ruffer Investment Company Schroder Asia Pacific Trust Troy Income & Growth Trust |
| Responsible AA ratings | Responsible A ratings |
| Pacific Assets Trusts | Keystone Positive Change Investment Trust |
Ratings reinstated
Fidelity Short Dated Corporate Bond and Fidelity Sustainable Moneybuilder Income funds: A ratings reinstated
Square Mile’s team of analysts have lifted the suspension on the ratings held by the Fidelity Short Dated Corporate Bond and Fidelity Sustainable Moneybuilder Income funds and they are reintroduced into the Academy of Funds with A ratings. The funds’ ratings were suspended in January 2023 on the announcement of lead portfolio manager Sajiv Vaid’s impending retirement. However, in the intervening period, the analysts have been pleased with the continuity of management through the funds’ long standing manager Kris Atkinson and the addition of Shamil Pankhania and they are therefore comfortable that the funds continue to warrant their respective ratings. (Decision as at 20.10.23)
Ratings removed
Fidelity Extra Income fund loses A rating
Square Mile suspended the A rating held by the Fidelity Extra Income fund in January 2023 on the news of the upcoming retirement of lead manager, Sajiv Vaid. The analysts’ conviction in this fund has been waning for some years, given disappointing relative performance as well as considerable changes to the fund’s management team and they have therefore taken the decision to remove its rating. (Decision as at 20.10.23)
abrdn Global Inflation-Linked Bond & abrdn Short Duration Global Inflation-Linked Bond funds lose ratings
Square Mile’s analysts have removed their ratings from the abrdn global inflation-linked bond and the abrdn short duration global inflation-linked bond funds. Given the continued limited active risk in these funds, they no longer believe they provide a compelling enough case for active management in this asset class. (Decision as at 19.10.23)
Aviva Investors UK Listed Equity Income fund loses A rating
On the news that James Balfour, the co-manager of the Aviva Investors UK Listed Equity Income fund, is to resign, Square Mile has taken the decision to remove the fund’s A rating. Trevor Green and Charlotte Meyrick have assumed management responsibility for the fund while Chris Murphy, the fund’s other co-manager is on a period of extended leave. Unfortunately, Square Mile’s analysts believe these changes to be material and can therefore no longer support the fund’s inclusion in the Academy of Funds. (Decision as at 11.10.23)
