Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 34 interviews with investment professionals from 59 asset management groups during June 2025. Based on the intelligence gained during these meetings and in light of recent corporate announcements, the following actions have been taken:
New ratings
Latitude Horizon fund awarded A rating
Square Mile’s team of analysts have awarded the Latitude Horizon fund an A rating and it enters the Academy of Funds. Managed by investment boutique Latitude Investment Management, the fund invests in a broadly equal split of blue-chip global equities and high-quality sovereign bonds. The equity element is the primary driver of returns and typically consists of between 25 to 30 stocks, which are spread across a range of sectors to provide growth across the market cycle. In contrast, the fixed income portfolio is primarily held to provide protection against challenging conditions for equity markets.
Since launch in 2016, the fund has demonstrated a strong track record of meeting its objectives. Square Mile’s analysts believe this to be a robust strategy for investors who are looking for a fund that typically invests in a balance of global equities and government bonds. (Decision as 12.06.25)
Blackstone Global Investment Grade Corporate Bond fund awarded A rating
Square Mile has introduced the Blackstone Global Investment Grade Corporate Bond fund into the Academy of Funds with an A rating. Managed by Blackstone Credit and Insurance (BXCI), this strategy invests in investment grade credit using a fundamentally based systematic model. The underlying model looks to find mispriced bonds using default probabilities, along with a variety of credit fundamental indicators to create a target portfolio which is subsequently replicated by the team once it has implemented its strict risk optimisation procedure.
Square Mile’s analysts believe this fund offers access to a differentiated strategy that could be used to improve investors’ portfolio diversification when held alongside existing global corporate bond holdings, thanks to its potential to deliver positive uncorrelated alpha. (Decision as at 12.06.25)
Rating upgrade
Invesco Distribution fund upgraded from A to AA rating
Square Mile has upgraded the rating held by the Invesco Distribution fund from A to AA. This recognises the analysts’ increased conviction in Edward Craven since taking over as the fund’s lead manager at the end of 2021 and his ability to leverage the strong and broad resource of the Invesco fixed income team. Despite a challenging market backdrop since assuming responsibility for the fund, he has delivered a consistent income in addition to strong relative returns versus the fund’s benchmark. (Decision as at 30.06.25)
Retained ratings
Fidelity European Trust retains AA rating
Following the announcement from the respective boards of the intention to merge the Henderson European Trust into Fidelity European Trust, Square Mile’s analysts have maintained their AA rating of the latter strategy. They believe this news is positive as the merged trust will continue to be managed by Fidelity European Trust’s portfolio managers Sam Morse and Marcel Stötzel, along with an investment objective and process that will remain unchanged. The larger trust size should create additional benefits for investors, with lower costs, increased marketability and enhanced liquidity. The combination of these factors should be beneficial for shareholders, but Square Mile will continue to monitor developments over the coming months as the boards aim for a September 2025 completion date. (Decision as at 19.06.25)
Schroder Income and Schroder Income Maximiser funds retain A ratings
Despite the news that Andy Evans, co-manager of the Schroder Income and Schroder Income Maximiser funds, was leaving the firm in mid-June to take a career break, Square Mile’s analysts have decided to retain the funds’ A ratings.
They recognise this represents a meaningful change for the Global Value team, given Mr Evans’ deep experience and insight across pan-European markets and that it follows the loss of Kevin Murphy in 2024. However, they take comfort in the fact that the highly experienced team head, Nick Kirrage, remains in place, providing continuity and stability from a portfolio management perspective. They also maintain confidence in the strength and depth of what is a highly collegiate team which draws upon a well thought out and repeatable process, which has been well executed over time.
In addition, analyst Tom Grady, who joined the team in January 2025 as an internal hire, has now been named a co-manager on all the UK funds managed by the team. Having met Mr Grady, who has over a decade’s experience, the analysts feel he is well placed to step into his new role, believing he will act as a good complement to Mr Kirrage in managing the funds. (Decision as at 11.06.25)
BNY Mellon Long-Term Global Equity fund retains AA rating
Following the news that Charlie Macquaker, Executive Director of Investment at Walter Scott, is to retire at the end of June 2026, Square Mile’s analysts have decided to retain the AA rating on the BNY Mellon Long-Term Global Equity fund.
Whilst Mr Macquaker’s experience will undoubtedly be missed by the team, the analysts believe one of the key features of this strategy is that it does not rely on the strength of any individual, with a highly collegiate approach employed across a well-resourced team. In addition, as part of the succession planning, Head of Research, Alan Lander will assume many of Mr Macquaker’s responsibilities, with the wider team also contributing further as he approaches retirement. As a result, the analysts are comfortable the departure will not meaningfully impact the team-based approach and are encouraged by what appears to be a sensible transition period.
Square Mile would like to take this opportunity to congratulate Mr Macquaker on his long and distinguished career and wish him all the best in retirement. (Decision as at 02.06.25)
Suspended ratings
Regnan Global Equity Impact Solutions fund: Responsible A rating suspended
Following the announcement that co-manager Mohsin Ahmad and dedicated analyst Maxime Le Floch, have left Regnan, Square Mile has suspended the Responsible A rating on the Regnan Global Equity Impact Solutions fund. The investment team now consists of Tim Crockford, the lead portfolio manager since inception, and Laura Sheehan, senior analyst since 2024. Considering these changes to the management team, the analysts believe it is prudent to suspend their rating whilst they assess the potential implications for the strategy. (Decision as at 20.06.25)
Ratings removed
BNY Mellon Japan Small Cap Equity Focus fund loses A rating
Square Mile has made the decision to remove the A rating from the BNY Mellon Japan Small Cap Equity Focus and it leaves the Academy of Funds. BNY Mellon has decided to close the strategy and dissolve its Japanese equities entity by the end of 2025. Given these developments, Square Mile can no longer support the fund’s inclusion within the Academy of Funds. (Decision as t 18.06.25)
Baillie Gifford Shin Nippon PLC and Baillie Gifford Japanese Smaller Companies fund lose A ratings
Having recently suspended the A ratings on the Baillie Gifford Shin Nippon Trust and the Japanese Smaller Companies fund, Square Mile’s analysts have now formally removed these ratings due to the departure of lead manager Praveen Kumar. Brian Lum, previously deputy manager, has become lead manager of the trust and remains co-manager of the fund. He is joined by Jared Anderson as deputy manager of the trust and co-manager of the fund.
Given the leadership changes and with neither Mr Lum nor Mr Anderson having a direct track record in managing a dedicated Japanese smaller companies strategy, the analysts feel they can no longer support either vehicle’s inclusion within the Academy of Funds. (Decision as at 17.06.25)
FTGF Brandywine Global Fixed Income fund loses A rating
Square Mile has taken the decision to remove the A rating from the FTGF Brandywine Global Fixed Income fund. The strategy’s recent performance profile has been out of line with the analysts’ expectations, particularly following the changes to its investment mandate. In their view, this has resulted in a significant fall in the fund’s assets. Their conviction in the strategy is now at a level where they feel they can no longer support the fund’s ongoing inclusion within the Academy. (Decision as at 13.06.25)
Stewart Investors European (ex UK) All Cap fund loses Positive Prospect rating
Square Mile’s analysts have removed the Positive Prospect rating from the Stewart Investors European (ex UK) All Cap fund and it leaves the Academy of Funds. The fund originally entered the Academy in August 2022, however, given it remains a small strategy and it has seen limited growth in assets under management the analysts have decided to remove the fund from the Academy. (Decision as at 04.06.25)
