Ratings retained
M&G UK Inflation Linked Corporate Bond fund retains A rating
Following the announcement that Matt Russell has replaced Wolfgang Bauer as deputy manager of the M&G UK Inflation Linked Corporate Bond fund, Square Mile’s analysts have confirmed the fund’s A rating will be retained. They continue to have strong conviction in Ben Lord as the lead portfolio manager and anticipate limited changes to the strategy. The analysts will discuss the future plans for this fund with Mr Lord and will provide a further update if necessary. (Decision as at 08.07.21)
TB Evenlode Income and TB Evenlode Global Income funds retain A ratings
On the 1st of July 2021, Evenlode Investment Management’s parent firm, The Oak Investment Partnership (OIP), formalised a change in its corporate structure. Previously encompassing Evenlode Investment Management (EIM), Wise Funds and Wise Investments, OIP has now demerged from the latter two subsidiaries. Over the coming months, OIP will act as a holding company solely for EIM, before dissolving, ultimately leaving the existing Employee Benefit Trust as the 100% owner of EIM.
Square Mile’s analysts have a favourable view of the demerger as it simplifies EIM’s corporate structure and affords the firm’s employees the benefits of ownership. Despite the changes, EIM’s investment philosophy and process will not be affected and the A ratings awarded to the TB Evenlode Income and TB Evenlode Global Income funds will be retained. (Decision as at 01.07.21)
Rating downgraded
Jupiter UK Alpha fund downgraded from AA to A rating
Square Mile has downgraded the AA rating on the Jupiter UK Alpha fund to an A rating. The analysts continue to recommend the strategy in the Academy of Funds and believe the manager’s patience and tenacity to be important attributes. However, the fund has seen a sustained decline in its assets under management over the medium term and this, combined with their current level of conviction, leads them to believe that an A rating is more appropriate. (Decision as at 26.07.21)
Ratings removed
Invesco Global Targeted Returns fund: A rating removed
Square Mile has taken the difficult decision to remove its A rating from the Invesco Global Targeted Returns fund. This follows an extended period in which returns have fallen considerably short of the fund’s target. In addition, it has recently been announced that David Millar, one of the original three architects of the strategy, will shortly step down as a named portfolio manager of the fund following a similar announcement about co-founder David Jubb at the end of last year. The combination of disappointing performance and changes to the team has undermined Square Mile’s conviction to the extent that the analysts feel the fund’s A rating can no longer be justified.
Premier Miton Multi-Asset Conservative Growth fund: suspended A rating removed
Square Mile has removed the Premier Miton Multi-Asset Conservative Growth fund from the Academy of Funds following its merger into the Premier Miton Multi Asset Defensive fund on 18th June 2021. The fund’s A rating had been suspended in January 2021 on the news that the management of the fund would change and that it would follow a different investment approach in future. (Decision as at 13.07.21).
