Ratings upgraded
TB Evenlode Income and TB Evenlode Global Income funds upgraded from an A to AA rating
Square Mile has upgraded the A rating of both the TB Evenlode Income and TB Evenlode Global Income funds to an AA rating. The analysts consider these funds to be attractive income-orientated strategies that are run with a simplistic, yet disciplined firm-wide approach. This focuses on high quality companies with strong free cash flows in order to be able to deliver sustainable dividend growth. Both funds are managed by highly competent managers, whom the analysts believe to be excellent stewards of their clients’ capital, making these compelling propositions for long-term investors seeking reliable income funds. (Decision as at 10.09.21)
Unicorn UK Ethical Income fund upgraded to Responsible A rating
Square Mile has upgraded the Unicorn UK Ethical Income fund from a Responsible Positive Prospect to a Responsible A Rating. The fund is managed using an approach which centres around a clear ethical screening process and the identification of companies with robust business models and strong balance sheets, with the intention of holding them for the long term. Given the managers’ preference for companies further down the market-capitalisation spectrum, Square Mile’s analysts believe this strategy should appeal to investors who want to diversify their UK Equity Income streams away from the market’s larger dividend distributors, as well as those with a preference for ethical exclusions to be applied across their investments. (Decision as at 06.09.21)
Ratings retained
Janus Henderson Strategic Bond fund retains AA rating
Square Mile’s analysts have decided to maintain their AA rating on the Janus Henderson Strategic Bond fund, despite the news Rebecca Young, co-portfolio manager of the offshore version of the fund, will leave the business to join Artemis. Janus Henderson has made two internal hires to support the team in covering Rebecca’s wider role within the team. Square Mile’s conviction in this fund remains centred on the excellent macro positioning of co-managers John Pattullo and Jenna Bernard, which is unchanged by this development. (Decision as at 08.09.21)
Baillie Gifford UK Equity Alpha fund retains A rating
Despite the announcement that Baillie Gifford’s head of UK equities, Gerard Callahan, will retire at the end of April 2022, Square Mile has retained its A Rating on the Baillie Gifford UK Equity Alpha fund. However, in the coming weeks, Square Mile’s analysts will meet Milena Minerva, who has assumed co-manager responsibilities for the fund and will become lead manager from next May, to discuss the transition and future structure of the portfolio. A further update will be given in due course. (Decision as at 03.09.21)
Ratings removed
Artemis Strategic Bond and Artemis High Income funds: ratings removed
On the news that the James Foster and Alex Ralph, managers of the Artemis Strategic Bond and Artemis High Income funds are to leave the firm, Square Mile has removed the ratings on both funds. The analysts’ conviction in these strategies has always been based on their recognition of the abilities of Foster and Ralph and their application of the philosophy and process underlying these strategies. The management of both funds has been transferred to Artemis’ Edinburgh office, and Juan Valenzuela (Strategic Bond) and David Ennett (High Income) will now manage these strategies. In due course, Square Mile will reassess both funds under their new managers.(Decision as at 08.09.21)
