Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 35 interviews with investment professionals from 59 asset management groups during March 2025. Based on the intelligence gained during these meetings and in light of recent corporate announcements, the following actions have been taken:
New ratings
Rathbone Global Opportunities Fund awarded A rating
Square Mile’s analysts have introduced the Rathbone Global Opportunities fund into the Academy of Funds with an A rating. Managed by James Thomson and Sammy Dow, their investment framework is focused on companies that they believe are high quality with attractive underappreciated growth potential. Whilst this fund can invest in any global market, the portfolio is expected to focus on developed markets.
Overall, the analysts believe this fund to be an attractive choice for investors that are looking for a strategy with a quality growth bias that is appropriately diversified by stock, but with a slightly higher growth profile than many of its quality peers. (Decision as at 28/03/2025)
Goldman Sachs Sovereign Green Bond fund awarded a Responsible A rating
Square Mile’s team of analysts have awarded a Responsible A rating to the Goldman Sachs Sovereign Green Bond fund. Managed by a highly capable and well-regarded investment team dedicated to green bond investing, this fund provides access to a diversified portfolio of high quality sovereign green bonds, with a focus on the European market.
Green bonds are effective in offering a direct solution to an environmental issue as their proceeds are used exclusively for projects that have a positive impact on the environment. This fund is therefore an interesting proposition for investors seeking to achieve a positive environmental impact from their investments through a portfolio of high-quality government bonds. (Decision as at 21/03/2025)
TwentyFour Sustainable Short Term Bond Income fund awarded Responsible AA rating
Square Mile has awarded the TwentyFour Sustainable Short Term Bond Income fund a Responsible AA rating and it enters the Academy of Funds. This strategy aims to deliver a combination of income generation and capital preservation within a low volatility profile. Managed by Chris Bowie and Gordon Shannon, the fund benefits from the highly skilled and well-resourced fixed income team at TwentyFour Asset Management, a boutique and specialised investment house dedicated to fixed income strategies.
Square Mile’s analysts believe that this fund is an attractive option for investors looking for a short dated investment grade bond fund with sustainable objectives aligned to the Paris Agreement. (Decision as at 10/03/2025)
Jupiter Strategic Absolute Return Bond fund awarded A rating
Square Mile’s analysts have introduced the Jupiter Strategic Absolute Return Bond fund into the Academy of Funds with an A rating. This is a global macro fixed income strategy with the ability to take long or short positions across the bond universe, exhibiting characteristics that the analysts regard as highly desirable in an absolute return fund. A key feature is generating returns which are lowly correlated to both equity and bond markets, with the fund having a proven track record of delivering positive returns during market downturns. A key driver of returns has been the managers’ ability to limit drawdowns by nimbly adjusting duration.
The analysts believe this to be an attractive offering and one that can offer strong diversification benefits for investors’ portfolios through its distinct approach to fixed income investing, a proven investment process and risk control along with a strong team ethos. (Decision as at 04/03/2025)
Dimensional Emerging Markets Value fund awarded A rating
Square Mile has awarded an A rating to the Dimensional Emerging Markets Value fund. The fund seeks to benefit from the value premium, investing systematically into the cheaper end of the market. The framework further targets stocks with higher profitability and smaller market cap within the value stocks they have previously identified.
The fund incorporates academic research and expert implementation from the wider firm into a well-priced offering. The process is based on the investment philosophy Dimensional has developed over many years – that expected returns are higher in specific areas of the market. Regular small trades ensure the fund remains aligned to desired exposures without incurring significant trading costs.
Overall, the analysts believe this strategy to be suitable for investors seeking consistent exposure to value within emerging markets while paying less than they would for a more traditional active emerging markets fund. (Decision as at 04/03/2025)
GMO Quality Investment fund awarded A rating
Square Mile’s analysts have introduced the GMO Quality Investment fund into the Academy of Funds with an A rating. Managed by Tom Hancock, Ty Cobb and Anthony Hene, they believe this fund offers a differentiated approach to investing into quality companies within the global sector, predominantly due to the managers’ greater focus on valuation. Whilst the primary focus is on selecting high quality companies that are attractively priced, the final portfolio is constructed using a blend of companies with value, core and growth characteristics. Overall, they believe this strategy to be suitable for investors looking for a fairly concentrated portfolio focused on quality, but with an eye on valuation risk. (Decision as at 03/03/2025)
Ratings retained
Trojan fund and Personal Assets Trust retain AA ratings
Following the announcement that Charlotte Yonge, lead manager of the Trojan Ethical fund, is being promoted to co-manager on the Trojan fund and Personal Assets Trust on the 1st May 2025, Square Mile has retained the AA ratings on both the fund and the trust. The analysts believe the move to be a natural progression for Ms Yonge, who has ably supported Sebastian Lyon on the strategy for over a decade and has led on the Trojan Ethical fund since its inception. Therefore, they foresee no disruption to the management of the funds and trust and retain their conviction in their ratings. (Decision as at 31/03/2025)
Jupiter Merlin Fund Range retains AA ratings
Following the news that one of the original founding directors of the Jupiter Merlin team, Algy Smith-Maxwell, is to retire at the end of June 2025, Square Mile confirms the retention of the AA ratings on the Jupiter Merlin Conservative Select, Income, Balanced and Growth funds. Mr Smith-Maxwell formally stepped back from fund management responsibilities in May 2021 when David Lewis and John Chatfeild-Roberts were named co-heads of the Merlin team. Over recent years, Mr Smith-Maxwell has held a less prominent role in decision making within the team and therefore Square Mile’s analysts believe his departure will cause limited disruption to the ongoing management of the team’s fund range. Consequently, they are comfortable maintaining their ratings.
Square Mile would like to take this opportunity to congratulate Mr Smith-Maxwell for his contribution to the fund management industry over the years and wish him all the best in his retirement. (Decision as at 27/03/2025)
JPM Emerging Markets Income fund & JP Morgan Global Emerging Markets Income Trust retain AA ratings
Following the news of Isaac Thong’s resignation, a named portfolio manager on the JPM Emerging Markets Income fund and the JP Morgan Global Emerging Markets Income Trust, Square Mile has retained the AA ratings on both vehicles. The strategy will continue to be managed by Omar Negyal, who has been the lead manager since 2014. Mr Negyal is supported by a large team of in-house analysts and the firm’s Income Emerging Markets & Asia Pacific (EMAP) team of portfolio managers, led by Mr Negyal. The analysts believe this ensures a good level of continuity and stability in the management of the strategy. (Decision as at 11/03/2025)
AXA Global Sustainable Managed fund changed to a Responsible A rating
Following the recent change in fund name, including dropping the Framlington name, and changes to the objective and investment policy, Square Mile has amended the A rating of the AXA Global Sustainable Managed fund to a Responsible A rating. AXA recently confirmed that it will be formally incorporating the fund’s commitment to the global transition to net zero by investing in the shares of companies which demonstrate a clear and credible commitment to achieving net zero carbon emissions by 2050 or are decreasing their carbon emissions intensity to achieve net zero emissions by 2050. The managers will seek to keep the weighted average carbon intensity (WACI) of the fund’s equity investments lower than its emissions benchmark, the MSCI All Countries World index. As a result of this change, which should be achieved without significant disruption to the team’s long-standing investment process, Square Mile’s analysts now believe a Responsible A rating is more appropriate. Additionally, in Q1 2025, the fund adopted the Sustainability Improvers label. (Decision as at 10/03/2025)
FSSA Greater China Growth fund retains AA rating
Following the news that Helen Chen will be succeeding Martin Lau as lead manager of the FSSA Greater China Growth fund, Square Mile’s analysts have retained the fund’s Responsible AA rating. Ms. Chen has been with FSSA for 12 years, including six as a co-manager of this strategy. During this time, she has gained extensive experience investing in in the asset class, demonstrating strong expertise and leadership. The analysts remain comfortable with the management of the fund as Mr Lau will continue as co-manager, whilst also serving as head of the team, ensuring continuity and stability in its management. (Decision as at 06/03/2025)
Ratings removed
Keystone Positive Change Investment Trust loses Responsible A rating
On 17 March 2025, the board of Keystone Positive Change Investment Trust announced that shareholders have unanimously approved proposals to voluntarily wind up the trust and either take a cash payout or rollover into the Ballie Gifford Positive Change fund. Square Mile’s analysts had already suspended the trust’s Responsible A rating in light of the previous announcement of this intended corporate action. Following the passing of these resolutions, Square Mile has removed the trust from the Academy of Funds.
The Ballie Gifford Positive Change fund maintains a Responsible A rating in the Academy. (Decision as at 24/03/2025)
RGI European fund loses A rating
Square Mile’s analysts suspended the RGI European fund’s A rating in December 2024 when River Global announced the news of the impending departure of the strategy’s manager James Sym to Goodhart Partners. Although he was leaving the business, Mr Sym was going to continue managing the fund on a sub-advisory basis, therefore retaining the investment approach. The analysts recently met with Mr Sym at his new group and whilst they understand the reasons for his move, they feel it is too early in his new venture for them to maintain conviction in the fund’s rating given the change of environment and the support surrounding him. Consequently, they have removed the fund from the Academy of Funds. (Decision as at 13/03/2025)
First Sentier Responsible Listed Infrastructure fund loses Responsible Positive Prospect rating
Square Mile has decided to remove the Responsible Positive Prospect (PP) rating from the First Sentier Responsible Infrastructure fund. While the analysts maintain their A rating on the core strategy, the First Sentier Global Listed Infrastructure fund, they have concerns over the Responsible version. Investor sentiment has dissipated over recent years and performance has been underwhelming since launch, although the analysts acknowledge this is not out of kilter with similar responsibly-orientated strategies. However, they feel that they have given this strategy sufficient time to build scale, but in the absence of a foreseeable catalyst for increased investor demand their conviction has fallen to a level where they feel they can no longer support the rating. (Decision as at 06/03/2025)
