Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 55 interviews with investment professionals from 32 asset management groups during January 2025. Based on the intelligence gained during these meetings and recent corporate announcements, the following actions have been taken:
Ratings upgrades
BNY Mellon Multi-Asset Balanced fund upgraded to AA rating
Square Mile’s team of analysts have upgraded the rating held by the BNY Mellon Multi-Asset Balanced fund from A to AA. This reflects their increased conviction in Simon Nichols’ consistent investment approach since taking over as the fund’s lead manager in 2017. Over his tenure, Mr Nichols has been able to deliver strong absolute and relative returns ahead of the fund’s benchmark. (Decision 21.01.25)
Fidelity Special Situations fund and Fidelity Special Values investment trust both upgraded to AA ratings
Square Mile has confirmed rating upgrades for the Fidelity Special Situations fund and Fidelity Special Values investment trust from A to AA. This recognises Alex Wright’s consistent and unwavering adherence to his contrarian, multi-cap investment style since taking over as the strategies’ lead manager in 2014 and 2012 respectively. Despite challenging market conditions for multi-cap portfolios, Mr Wright has delivered strong performance across both strategies on an absolute and relative basis. (Decision as at 20.01.25)
Aviva Investors MAF Core range upgraded to Recommended rating
Square Mile’s analysts have upgraded the ratings across the Aviva MAF Core range of funds from Positive Prospect to Recommended. The five funds within the range apply a low-cost, multi-asset, globally orientated investment approach, along with ESG integration, differentiating the proposition from many of its peers. The analysts believe that the range plays to Aviva Investors’ core capabilities, its significant resource and a strong heritage in the field of multi-asset solutions and responsible investing.
Since introducing the range to the Academy of Funds with a Positive Prospect rating, the analysts’ conviction has grown alongside a deeper understanding of both the team and process. In addition, the funds have met several milestones set by the analysts since awarding its initial rating, leading to the decision to upgrade to a full Recommended rating. (Decision as at 14.01.25)
Rating reintroduced
Jupiter UK Dynamic Equity fund reintroduced to the Academy with A rating
Square Mile has reintroduced the Jupiter UK Dynamic Equity fund into the Academy of Funds with an A rating. The fund, previously known as Jupiter UK Special Situations, had its AAA rating suspended in early 2024 on the news that long-term manager, Ben Whitmore, was leaving the business. The fund has been managed by the experienced Alex Savvides since October 2024, when its name changed. Mr Savvides joined Jupiter from JO Hambro Capital Management where he built a successful and established track record of value investing. Supported by two of his previous colleagues, he seeks to manage a relatively concentrated portfolio of undervalued predominantly UK large and medium-sized listed companies. Overall, Square Mile’s analysts believe this to be an attractive option for investors who seek long-term capital appreciation from UK equities. (Decision as at 16.01.25)
Ratings retained
FP WHEB Sustainability Impact fund retains Responsible AA rating
Square Mile confirms that the FP WHEB Sustainability Impact fund will retain its Responsible AA rating, despite the recent announcement that WHEB has been acquired by Foresight Group. The analysts have spoken with George Latham, managing partner of WHEB, and their initial view is that this corporate action will not materially affect the management process underlying the fund. Indeed, they believe that there may be several advantages for WHEB as a whole following this acquisition. These include the benefits of Foresight’s distribution infrastructure, risk management and governance and a complementary pedigree of impact investing which they believe aligns culturally with WHEB’s philosophy.
As part of the analysts’ ongoing due diligence on the fund, they will meet with the WHEB team in the coming weeks, and they will use this as an opportunity to discuss the implications of this takeover in greater detail. (Decision as at 30.01.25)
Liontrust Special Situations, UK Smaller Companies, and UK Growth funds retain ratings
Following the recent announcement that Julian Fosh, senior member of the highly regarded Liontrust Economic Advantage team retired at the end of December 2024, Square Mile’s analysts have retained the AA ratings on the Liontrust Special Situations and UK Smaller Companies funds, and the A rating on the Liontrust UK Growth fund. While recognising that Mr Fosh was one of the more experienced members of this well-established team, they feel the highly collegiate nature and common investment philosophy shared across the remaining members mitigates his departure from the business.
Square Mile would like to take this opportunity to congratulate Mr Fosh on a long and successful career and wish him all the best in his retirement. (Decision as at 09.01.25)
Ratings removed
JPM Multi Asset Income fund loses A rating
Square Mile has decided to remove the A rating from the JPM Multi Asset Income fund. Despite the fund generating a competitive level of income over the years, its total return performance has been challenged relative to its benchmark and peers. Whilst acknowledging the impact of the fund’s hedging strategy during a period of Sterling weakness versus the US dollar, the analysts’ confidence in the team’s ability to add value through asset allocation and stock selection has diminished over recent years to a level where they can no longer justify the fund’s A rating. (Decision as at 20.01.25)
Premier Miton Multi-Asset Global Growth fund loses A rating
Square Mile has decided to remove the A rating from the Premier Miton Multi-Asset Global Growth fund. Despite the analysts’ conviction in Ian Rees and the wider team at Premier Miton, they have concerns over the fund’s medium-term track record, which they believe has resulted in a meaningful loss of assets. The fund sits within an increasingly competitive peer group and the analysts no longer believe that they can support its A rating. (Decision as at 20.01.25)
Ninety One UK Sustainable Equity fund loses Responsible A rating
Square Mile suspended the Ninety One UK Sustainable Equity fund’s Responsible A rating in December 2024 due to the group reviewing its ongoing viability. Unitholders have subsequently voted in favour of merging it into the Ninety One Global Sustainable Equity fund. As a result of this development, the Ninety One UK Sustainable Equity fund has been removed from the Square Mile Academy of Funds. (Decision as at 16.01.25)
