Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 42 interviews with investment professionals from 24 asset management groups during December 2024. Based on the intelligence gained during these meetings and recent corporate announcements, the following actions have been taken:
New ratings
Invesco Bond Income Plus Limited Awarded A rating
Square Mile has added Invesco Bond Income Plus Limited to the Academy of Funds with an A rating. The trust aims to generate a high level of dividend income and capital growth by focusing on the higher yielding segments of fixed income markets. Managed by Rhys Davies, it benefits from the highly skilled and well-resourced fixed income team at Invesco. The Square Mile analysts believe this trust to be an attractive option for investors looking for a stable high level of income from a diversified portfolio of high yielding credits. (Decision as at 20.12.24)
Royal London UK Government Bond Fund Awarded A Rating
Square Mile has included the Royal London UK Government Bond fund within the Academy of Funds with an A rating. Managed by Craig Inches and Ben Nicholl, this strategy provides investors with access to a skilled and experienced management team that takes a thoughtful and disciplined approach to investing in the asset class. Overall, the Square Mile analysts believe that this strategy represents a strong choice for investors seeking a long-term allocation to an actively managed, all-maturity UK government bond fund. (Decision as at 19.12.24)
Evenlode Global Equity Fund Awarded A Rating
Square Mile has introduced the Evenlode Global Equity fund into the Academy of Funds with an A rating. Managed by Chris Elliott and James Knoedler since its inception in 2020, the investment philosophy and methodology is very much aligned with Evenlode’s overall investment approach, which focuses solely on high quality companies. This latest addition to Evenlode’s fund suite is the first that does not require the managers to invest in income generating companies. As such, it offers a decent level of differentiation from both its sister funds, as well as other global equity funds within the Academy of Funds. Overall, the Square Mile analysts consider this fairly concentrated portfolio of quality companies to be an attractive option for investors seeking a long-term global equity strategy. (Decision as at 06.12.24)
CCLA Better World Global Equity Fund Awarded Responsible Positive Prospect Rating
Square Mile’s analysts have awarded the CCLA Better World Global Equity fund a Responsible Positive Prospect rating. This fund provides investors with a robust global equity proposition, run by fund managers committed to diligent stewardship, stringent ESG criteria, and alignment with investors’ values, ultimately driving positive societal and environmental outcomes. (Decision as at 03.12.24)
Rating retained
Aegon Ethical Cautious Managed Fund Retains Responsible A Rating
Despite the recent news that Euan McNeil, co-manager of the Aegon Ethical Cautious Managed fund, left Aegon, the Square Mile analysts have decided to retain the fund’s Responsible A rating. Mr McNeil was appointed co-manager alongside Audrey Ryan in January 2024, replacing the head of UK fixed income and long-standing co-manager Iain Buckle. Following Mr McNeil’s departure, Mr Buckle will again assume the role of co-manager alongside Ms Ryan. Given Mr Buckle’s experience and long association with the fund, as well as his unbroken tenure managing the Aegon Ethical Corporate Bond fund, which is run in an identical way to the fixed income component of this fund, the Square Mile analysts are happy to retain the fund’s rating. (Decision as at 16.12.24)
Suspended ratings
Ninety One UK Sustainable Equity Fund: Responsible A Rating Suspended
Ninety One has reviewed the Square Mile Responsible A-rated Ninety One UK Sustainable Equity fund and in light of this, the firm has proposed that the fund’s unit holders approve a merger into the Ninety One Global Sustainable Equity fund. For the merger to be approved, 75% of the votes cast must be in favour of the proposal, with a deadline of 13 January 2025. The result will be announced on 16 January 2025.
If successful, investors will receive new units in the Ninety One Global Sustainable Equity fund on 28 February. Dealing in the UK Sustainable Equity fund will be suspended from 12 noon on 27 February until 9am on 3 March when investors will have received their new units. The Square Mile analysts believe there to be a high chance that the merger will be approved and have therefore taken the decision to suspend the Square Mile rating pending the outcome of the vote. Should the merger gain approval, the fund will be removed from the Academy of Funds. (Decision as at 06.12.24)
RGI European Fund: A Rating Suspended
Square Mile has suspended the A rating of the RGI European fund on the news that its fund manager James Sym is moving to Goodhart Partners, a London-based global equity investment boutique. Although he is departing River Global, he will continue to manage the RGI European fund on a sub advisory basis. Therefore, the fund’s investment process and approach are expected to remain the same. The Square Mile analysts aim to meet with Mr Sym when he is at his new group and will make a decision on the fund’s rating thereafter. (Decision as at 05.12.24)
