- Two funds enter the Academy of Funds
- Two ratings retained
- Three ratings downgraded
- One rating removed
Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 58 interviews with investment professionals from 29 asset management groups during June 2024. Based on the intelligence gained during these meetings, and following reviews in the light of corporate announcements, the following actions have been taken.
New ratings
Mirabaud Sustainable Global Dividend fund awarded Positive Prospect rating
Square Mile’s analysts confirm that the Mirabaud Sustainable Global Dividend Fund has entered the Academy of Funds with a Positive Prospect rating. This high conviction global equity income fund focuses on market-leading companies with strong cash flows and sustainable yields. Run by a highly experienced fund management team, this thematic strategy is underpinned by a robust investment process combined with strict ESG criteria. (Decision as at 27.6.24)
Regnan Global Equity Impact Solutions fund awarded Responsible A rating
Square Mile’s team of analysts has introduced the Regnan Global Equity Impact Solutions fund to the Academy of Funds with a Responsible A rating. This fund invests in companies that its management team identifies as offering solutions that are aligned with the UN Sustainable Development Goals. The analysts believe the structured framework and process are high quality and that the fund offers an attractive option for investors seeking to invest their capital in an impactful fashion. (Decision as at 19/.06.24)
Ratings retained
Schroder Recovery, Schroder Income & Schroder Income Maximiser funds retain A ratings
Schroders recently announced that Kevin Murphy, co-head and longstanding member of the Schroder Global Value team, is to leave the firm after a short handover period. Having assessed the potential impact of this development on the Schroder Recovery, Schroder Income & Schroder Income Maximiser funds, Square Mile’s analysts have decided to retain the A ratings held by these strategies.
While the departure of such a seasoned value investor as Mr Murphy will be a loss, Schroders has re-structured the team, with Nick Kirrage, Mr Murphy’s co-head, assuming sole leadership. In addition, Mr Kirrage will step back from his responsibilities for the team’s global mandates to return to day-to-day involvement on the UK strategies. He will work closely with experienced current co-managers Andrew Lyddon (Recovery) and Andy Evans (Income and Income Maximiser) creating a three-person sub-team overseeing all UK value mandates. Square Mile believes these changes mitigate the loss of Mr Murphy and the analysts maintain confidence in the depth and experience of what is a highly collegiate team. (Decision as at 04.06.24)
Ratings downgraded
Janus Henderson Strategic Bond and Fixed Interest Monthly Income funds downgraded to A ratings
On the news that John Pattullo, Co-Head of the Global Bonds team at Janus Henderson is to retire in March 2025, Square Mile has decided to downgrade the ratings of the Janus Henderson Strategic Bond and Janus Henderson Fixed Interest Monthly Income funds from AA to A.
Nonetheless, the analysts believe that the funds continue to warrant a place within the Academy of Funds on the strength of the remaining team members and the confidence that Jenna Barnard, Co-Head of the Global Bonds team, will continue to apply the long-standing investment approach. Ms Barnard has worked alongside Mr Pattullo for the last 20 years, developing the investment process with her strong asset allocation and credit selection skills. In addition, Nicholas Ware, portfolio manager of the Fixed Interest Monthly Income fund will become a named portfolio manager on the Janus Henderson Strategic Bond fund effective 1 July 2024. Mr Ware has significant experience in credit markets and has worked in the team for the last 12 years.
Square Mile would like to congratulate Mr Pattullo on his long and successful career and wish him all the best in his retirement. (Decision as at 05.06.24)
Rating removed
FSSA Japan Focus fund loses Responsible A rating
Due to a period of challenged performance and a steady decline in assets under management which have recently dropped below £100m, FSSA has decided to place the FSSA Japan Focus Fund under strategic review. As a result, Square Mile’s analysts have taken the decision to remove the fund’s Responsible A rating and it leaves the Academy of Funds. (Decision as at 03.06.24)
