Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 64 interviews with investment professionals from 41 asset management groups during August 2025.
Based on the intelligence gained during these meetings and in light of recent corporate announcements, the following actions have been taken:
New ratings
Schroder UK-Listed Equity Income Maximiser fund awarded A rating
Square Mile’s team of analysts have introduced the Schroder UK-Listed Equity Income Maximiser fund to the Academy of Funds with an A rating. The fund aims to provide investors with a yield of 7% p.a. while maintaining exposure to the UK equity market. The yield from dividends is supplemented by a covered call option overlay, which trades some future potential upside for premium income. As one of the cheapest active UK Equity Income funds, the analysts believe it represents good value for money for investors seeking a higher yield from UK equities. (Decision as at 22.08.25)
M&G European Sustain Paris Aligned fund awarded Responsible A rating
Square Mile has awarded the M&G European Sustain Paris Aligned fund a Responsible A rating and it enters the Academy of Funds. This fund takes a high-conviction, low-turnover approach to invest at least 70% of the portfolio in European ex-UK companies that contribute towards the Paris Agreement Climate Change goal. Overall, the analysts believe this fund to be an attractive choice for investors that are looking for a strategy that delivers longer-term outperformance while achieving a positive environmental impact. (Decision as at 07.08.25)
EdenTree European Equity fund awarded Responsible A rating
Square Mile’s analysts have introduced the EdenTree European Equity fund into the Academy of Funds with a Responsible A rating. Managed by an experienced team with strong supporting resources, this compelling strategy adopts a bottom-up, value-oriented approach, focusing on undervalued companies that the team believes can generate strong and sustainable cash flows over time. This, in turn, should support a growing income stream and the return of capital to shareholders over the long term.
The analysts believe this fund offers differentiated exposure within the European equity space, combining a clear value bias with robust responsible investment credentials. As such, they see it as well positioned to appeal to investors seeking to broaden their regional exposure. (Decision as at 07.08.25)
EdenTree Global Sustainable Government Bond fund awarded a Responsible Positive Prospect rating
Square Mile announces that its analysts have awarded the EdenTree Global Sustainable Government Bond fund a Responsible Positive Prospect rating. This fund offers investors access to ESG-labelled bonds issued by government and government-related entities with an additional proprietary sustainability layer. The analysts believe this fund to have the potential to be an appealing proposition for investors seeking to achieve a dual objective of achieving exposure to the asset class whilst helping to finance new or existing socio-environmental projects. (Decision as at 05.08.25)
M&G Global Sustain Paris Aligned fund awarded Responsible A rating
Square Mile has introduced the M&G Global Sustain Paris Aligned fund into the Academy of Funds with a Responsible A rating. This fund takes a high-conviction, low-turnover approach to invest at least 70% of the portfolio in companies that contribute towards the Paris Agreement Climate Change goal. Overall, Square Mile’s analysts believe this fund to be an attractive choice for investors that seek a strategy that delivers longer-term outperformance while achieving a positive environmental impact. (Decision as at 04.08.25)
Rating upgrade
Aegon High Yield Bond fund upgraded to AA rating
Square Mile’s analysts have upgraded the rating awarded to the Aegon High Yield Bond Fund from A to AA within the Academy of Funds. This upgrade reflects their increased conviction in fund managers Thomas Hanson and Mark Benbow. They have masterfully navigated challenging market conditions, leveraging the extensive global resources of Aegon’s fixed income team to deliver consistent income and strong returns for investors. Their ability to generate returns in excess of the fund’s benchmark has been a key factor in this decision. (Decision as at 29.08.25)
Fund mergers: ratings updated
RGI UK Alpha fund loses AA rating on merger into RGI UK Recovery fund which retains AA rating
Following an Extraordinary General Meeting held on 21st August 2025, River Global announced that the RGI UK Alpha fund will merge into the RGI UK Recovery fund, effective 5th September 2025. As a natural result of this action, this fund will relinquish its AA rating and it will leave the Academy.
Square Mile believes that the merger of these two funds is sensible as it will increase the RGI UK Recovery fund’s assets under management, potentially improving economies of scale, lowering expenses, and enhancing the prospects for improved customer outcomes.
Given the historical similarities between both strategies, Square Mile’s analysts do not anticipate any material changes to the investment process or the performance/risk profile of the RGI UK Recovery fund. Accordingly, its AA rating is maintained and it remains within the Academy. (Decision as at 22.08.25)
Ratings removed
Five Stewart Investors strategies lose ratings
On the recent news from Stewart Investors that portfolio managers David Gait, Sashi Reddy and Sujaya Desai have departed the business, Square Mile removed the ratings of the following funds with immediate effect:
- Stewart Investors Asia Pacific Leaders fund – Responsible AA
- Stewart Investors Asia Pacific All Cap fund – Responsible AA
- Pacific Assets Trust – Responsible AA
- Stewart Investors Indian Subcontinent All Cap fund – Responsible AA
- Stewart Investors Worldwide All Cap fund – Responsible A
The analysts feel that this is a significant change to what has been a very stable team for many years with all three managers having been key members since they joined the firm. Mr Gait is the lead manager of the Asia Pacific Leaders and All Cap funds whilst Mr Reddy, is lead manager of the Indian Subcontinent All Cap fund, and Ms Desai, is the lead manager of the Global Emerging Markets All Cap strategy. The analysts believe that these departures are a material enough disruption to also impact the Worldwide All Cap fund, despite Nick Edgerton remaining as its lead manager.
The analysts also believe these team changes have an impact on the Pacific Assets Trust, which Mr Gait has been involved with since 2010. Therefore, for the same reason, they have removed the trust from the Academy of Funds. (Decision as at 21.08.25)
Regnan Global Equity Impact Solutions fund loses Responsible A rating
Square Mile has taken the decision to remove the Responsible A rating from the Regnan Global Equity Impact Solutions fund. This rating was initially suspended in June 2025 following the departure of co-manager Mohsin Ahmad and dedicated Analyst Maxime Le Floch. The analysts have subsequently met with Tim Crockford, lead portfolio manager since inception, and Laura Sheehan, a senior analyst on the fund since 2024, to discuss the impact of these departures.
Whilst they recognise the pedigree of the remaining team, they note that the fund has suffered a period of challenging performance and is facing multiple headwinds due to its inherent impact biases. The analysts note that it is commendable that the fund managers remain true to their approach, and they respect their skillset. Nonetheless, in an environment where positive investor sentiment is lacking and outflows have reduced the fund’s assets to what they believe to be a critical level, the analysts do not foresee a catalyst that would restore momentum to this proposition. (Decision as at 18.08.25)
