The £670m Jupiter UK Alpha fund has been removed from Square Mile’s coveted Academy of Funds, following recent news that long-standing manager Richard Buxton will retire at the end of the month.
In Square Mile Investment Consulting and Research’s rebalancing round-up for June, the team said the fund’s strategy is “synonymous with Mr Buxton” despite the fact new co-managers Ed Meier and Errol Francis have worked alongside him for “a number of years”.
“[The analysts] therefore feel they can no longer support the fund’s inclusion within the Academy of Funds,” the firm said.
Elsewhere during the month, three A-rated BNY Mellon fixed income funds had their ratings suspended, following the news that manager Paul Brain will become the firm’s deputy chief investment officer of multi-asset. The funds affected by this move are the BNY Mellon Global Dynamic Bond, Sustainable Global Dynamic Bond, and Global Dynamic Bond Income mandates.
Brain – who has headed up BNY Mellon’s fixed income team for almost 20 years – will remain lead portfolio manager in the short term, but intends to hand over the reins to Pictet Asset Management’s Ella Hoxha.
“Square Mile’s analysts will meet with Ms Hoxha in the coming months to discuss how the funds will be managed in future and will provide an update on these funds’ ratings in due course,” Square Mile’s research team said.
June also saw the £442.1m BlackRock European Absolute Alpha upgraded from an A to an AA rating as a result of an “outstanding” performance from co-manager Stephanie Bothwell, who took over the helm from David Tovey two years ago. Meanwhile, Square Mile noted fellow co-manager Stefan Gries “continues to execute the fund’s investment strategy in a highly disciplined and consistent manner,” despite his promotion to head of European equities less than a year ago.
Waverton Multi-Asset Income won a new spot in the Academy of funds with an A rating, which was rewarded for its “strong risk-adjusted return as well as [its] steady income stream”.
Elsewhere, Square Mile retained the AA ratings of TwentyFour Strategic Income and TwentyFour Monument Bond, despite the announced retirement of managers and founding partners Gary Kirk and Rob Ford.
“Both funds are managed using a team-based approach with at least four further named managers remaining on each strategy,” the research team said.
