Square Mile has removed its rating for the Premier Miton Multi-Asset Growth and Income fund, following a shake-up of its investment team.
The £517.4m fund’s rating was initially suspended in January 2021 when Premier pulled it from David Hambridge and Ian Rees’ multi-manager range, along with the £92.6m Multi Asset Conservative Growth fund. Oversight of the fund was handed to the multi-asset macro thematic team, led by David Jane (pictured) and Anthony Rayner.
Square Mile said its analysts’ conviction had not improved over a year later and had decided to boot it from its Academy of Funds.
Since Jane and Rayner took over, performance has been lacklustre, with the fund returning 3.8% over one year versus the 5.3% average for the IA Mixed Investment 40-85% Shares sector, according to Trustnet.
The fund has also dwindled in size considerably, falling from £652.9m at the start of 2021.
Janus Henderson UK Property Paif drops out of Academy of Funds
The Janus Henderson UK Property Paif also got the boot from Square Mile’s Academy after it was suspended for the second time in two years.
Janus Henderson was forced to gate the £1bn property Oeic and feeder fund a week after confirming it was “exploring various options” to sell the portfolio, which prompted a wave of investors to rush for the exit.
The sale was pre-empted by incoming rule changes involving the long-term asset fund (LTAF), a new open-ended structure with 90-180 day mandatory notice periods the Financial Conduct Authority has been pushing as a solution to property funds’ liquidity mismatch problem.
See also: Uncertain future for UK property funds as LTAF rule change looms
Schroders and Tellworth funds bag ratings
Two funds – the Schroder Managed Balanced and Tellworth UK Smaller Companies – were awarded ratings in Square Mile’s latest round-up.
The former, a multi-asset fettered fund-of-funds with an equities bias, benefits from “experienced managers” Johanna Kyrkland and Remi Olu-Pitan, who have been at the helm since 2011, and is supported by a “strong team”, analysts said.
The £2.1bn fund, which also sits in the IA Mixed Investment 40-85% Shares sector, is up 4.4% over the last year, but has generated punchier returns of 26.4% and 31.7% over three and five years, while the average fund has risen 22.5% and 29.8%, respectively.
In contrast, the Premier Miton Multi-Asset Growth and Income has returned 16.9% and 22.7% over the same timeframes.
“The use of Schroder funds within the strategy means it will have a bias to the value style of investing, although this factor has been moderated by the managers over recent years,” analysts said.
Square Mile praised Tellworth UK Smaller Companies for its “highly collaborative managers”, ex-Schroders duo Paul Marriage and John Warren, whose fundamental analysis-led approach has been tried and tested in a variety of market conditions.
“This fund is a compelling proposition for investors seeking exposure to some of the most dynamic smaller companies within the UK, coupled with a regard for ESG integration,” the research house said. “Investors should be prepared to accept volatility versus the fund’s index, however they should be adequately rewarded over the long term, given the managers’ strong performance record.”
