- Three new strategies enter the Square Mile Academy of Funds, including two property-related strategies
- One rating removed
Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 81 interviews with investment professionals from 48 asset management groups during November 2024. Based on the intelligence gained during these meetings, and following reviews in light of corporate announcements, the following actions have been taken.
New ratings
DUNN WMA Institutional UCITS fund awarded A rating Square Mile’s analysts have introduced the DUNN WMA Institutional UCITS fund into the Academy of Funds with an A rating. One of the longest established systematic trend-following strategies, this fund seeks to profit from directional price movements across multiple financial markets, including commodities. A core feature is its versatility in taking long and short positions to benefit from both market up and down trends and thus generate returns which can be negatively correlated to broad market indices. The fund has a proven record of delivering positive absolute returns when it matters most, including during sustained market downturns. As such, the analysts believe this fund can offer attractive diversification benefits within investors’ portfolios.  In their view, its long and impressive track record, proven investment process, and focus on risk management make it a compelling offering. (Decision as at 22.11.24)
TR Property Investment Trust awarded AA rating
Square Mile has awarded the TR Property Investment Trust an AA rating and it enters the Square Mile Academy of Funds. The trust aims to maximise total returns with a combination of capital growth and income via active investment within the pan-European real estate market. The trust has been managed by the experienced Marcus Phayre-Mudge since 2011 who brings a proven ability in identifying undervalued assets with the potential to benefit from macroeconomic tailwinds. The analysts therefore consider the TR Property Investment Trust to be an attractive option for investors seeking pan-European listed real estate exposure with the added diversification of a modest allocation to direct UK commercial property. (Decision as at 11.11.24)
Legal & General Global Real Estate Dividend Index awarded Recommended rating
Square Mile’s analysts have awarded the Legal & General Global Real Estate Dividend Index a Recommended rating. The fund complements the 15 passive equity funds from Legal & General that Square Mile currently rates. It aims to track the performance of the FTSE EPRA Nareit Developed Dividend Plus Index. This index compromises of over 300 REITs and real estate holding & development companies, all of which have one-year forecasted dividend yields greater than two per cent. Typically, 65%-75% of the index will be comprised of companies domiciled in the US. The analysts have awarded the Recommended rating in recognition of their high regard for the passive team at Legal & General; they consider the fund to be competitively priced and believe it will track its benchmark to within a reasonable range, as it has done historically. (Decision as at 04.11.24)
Rating removed
GAM Star Continental European Equity fund loses A rating
Square Mile reviewed the A rating held by the GAM Star Continental European Equity fund on the news that Niall Gallagher, its lead portfolio manager, along with two of his team members, Christopher Sellers and Chris Legg, are to leave the firm to join Jupiter Asset Management. Square Mile’s analysts view Mr Gallagher as a critical element validating the strategy’s A rating and, given his imminent departure, they have decided to withdraw this rating and remove the fund from the Academy of Funds. (Decision as at 19.11.24)
