Square Mile has removed its rating on the Artemis Strategic Bond and Artemis High Income funds following the announcement that managers James Foster and Alex Ralph are leaving the firm.
Last month, Artemis announced Foster, who co-manages the £1.8bn Artemis Strategic Bond fund, would retire from fund management at the end of the year. His co-manager on the fund since launch in June 2005, Ralph (pictured), is also leaving Artemis.
Stephen Snowden was promoted to head of fixed income as part of a reshuffle and Foster’s mandates, which also includes the £800m Artemis Monthly Distribution fund, will be redistributed among several managers in Snowden’s team who followed him from Aegon Asset Management, then Kames, to Artemis in 2019.
David Ennett will assume responsibility for High Income while Strategic Bond is to be handed to Snowden’s former Kames colleague Juan Valenzuela and Rebecca Young, who joins Artemis in November from Janus Henderson.
Rating has been based on Foster and Ralph
In its latest fund ratings round-up, Square Mile said its analysts’ conviction in the two Artemis bond funds has always been based on the 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.”
Fellow fund ratings agency RSMR rates the two funds but has placed them under review due to the change in manager.
Janus Henderson and Baillie Gifford funds hold on despite changes
Elsewhere, Square Mile kept its AA rating on the Janus Henderson Strategic Bond despite the news that co-portfolio manager Young is leaving to join Artemis.
“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,” analysts said.
Similarly, the Baillie Gifford UK Equity Alpha fund retained its A rating despite the announcement of Baillie Gifford head of UK equities Gerard Callahan’s retirement at the end of April 2022. Square Mile said analysts will meet with Callahan’s successor Milena Minerva in the coming weeks.
Square Mile also upgraded its rating on the TB Evenlode Income and TB Evenlode Global Income funds from an A to a AA rating, and boosted the Unicorn UK Ethical Income fund to a Responsible A rating.
Four funds picked up ratings during the month. The UBAM Positive Impact Equity fund, the VT Downing European Unconstrained Income fund and the ES River and Mercantile European fund were awarded a Positive Prospect rating. The LF Montanaro Better World fund was awarded a Responsible A rating.
