- Three new funds admitted to Square Mile Academy of Funds
- One fund retains rating after review; two ratings suspended
- One range of funds loses rating
Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 39 interviews with investment professionals from 23 asset management groups during December 2023. This brings the total number of meetings for the year to 823 with 38 funds being admitted to the Academy of Funds, including 18 investment trusts. Based on the intelligence gained during December’s meetings, and following reviews in the light of corporate announcements, the following actions have been taken.
New ratings
Royal London Sustainable Leaders fund awarded Responsible AA rating
Square Mile’s team of analysts have introduced the Royal London Sustainable Leaders fund to the Square Mile Academy of Funds with a Responsible AA rating. The strategy is managed by the experienced Mike Fox, a pioneer in sustainable investing, who is supported by a significant dedicated resource. The fund’s underlying philosophy and investment process, which the sustainable equities team applies across all its mandates, is long-term, disciplined and risk averse in nature. Mr Fox has a clear focus on investing in high quality companies that are both helping the transition to a more sustainable future and that he believes can generate strong financial returns. (Decision as at 20.12.23)
Artemis SmartGARP Global Emerging Markets fund awarded A Rating
Square Mile has added the Artemis SmartGARP Global Emerging Markets fund to its Academy of Funds with an A rating. The analysts believe this to be an attractive strategy that should suit long-term investors seeking exposure to the region. It is run by an experienced pair of portfolio managers applying a well-established investment process that focuses on identifying companies that they feel are attractively valued and have strong potential of delivering faster growth than the market over time. (Decision as at 18.12.23)
Jupiter Global Value Equity fund awarded A Rating
Square Mile’s analysts have awarded the Jupiter Global Value Equity fund an A rating and it enters the Academy of Funds. Managed by Ben Whitmore and Dermot Murphy, this fund is run in a similar fashion to the UK franchise for which they are both responsible. The managers are patient, contrarian investors, with a process that is underpinned by the belief that value investing will outperform over the very long term. Overall, the analysts believe the fund’s approach could appeal to investors seeking a global equity fund with a strong valuation discipline and which offers differentiation from the broader market. (Decision as at 13.12.23)
Ratings retained
Pyrford Global Total Return fund retains A rating
On 19 December, Pyrford International Ltd, part of Columbia Threadneedle Investments, announced its proposal to split the dual CEO and CIO role, currently held by Tony Cousins. The intention is that Paul Simons will become the firm’s next CEO and Daniel McDonagh, the next CIO. Both are long-standing members of the firm and once regulatory approval is received, the transition to the new leadership team will be gradual. Mr Cousins will assume the new position of Investment Chairman, an investment-only role with no responsibility for the firm’s non-investment activities. Square Mile’s analysts will continue to monitor developments over the coming months and provide updates where appropriate. (Decision as at 19.12.23)
Ratings suspended
Matthews Asia Pacific Tiger fund: AA rating suspended
Square Mile has suspended the AA rating of the Matthews Asia Pacific Tiger fund on the news that the fund’s lead portfolio manager, Sharat Shroff, was to depart the firm at the end of 2023. Other changes to the fund’s portfolio management team include Sean Taylor, CIO designate, becoming a lead portfolio manager and Peeyush Mittal and Jeremy Sutch becoming co-portfolio managers. In light of these developments, Square Mile’s analysts will seek to meet with the current lead manager InBok Song and Sean Taylor to discuss the changes to the team and will update investors in due course. (Decision as at 20.12.23)
Troy Income & Growth Trust: A rating suspended
Following the recent announcement of the intention to combine the Troy Income & Growth Trust (TIGT) and STS Global Income & Growth Trust, Square Mile’s analysts have suspended the A rating on the Troy Income & Growth Trust. The proposed combination remains subject to shareholder approval and regulatory clearances, with the detailed documentation expected to reach shareholders in February 2024. This will be followed by general meetings and a targeted completion by March 2024. The analysts will continue to monitor the situation closely and provide updates as further information becomes available. (Decision as at 5.12.23)
Rating removed
Embark Horizon Fund Range loses Recommended rating
Following the announcement that management of the Embark Horizon funds will move from Columbia Threadneedle Investments to BlackRock in Q1 2024, Square Mile has removed its Recommended rating for this range. Whilst the analysts acknowledge the strong resources at BlackRock, they believe the best course of action is to remove the rating while the new team establishes its process and builds its track record. (Decision as at 18.12.23)
