Square Mile has retained its recommended rating on the Architas Multi-Asset Active range of funds despite corporate change arising from the group’s acquisition by Liontrust last month.
The ratings agency said in its latest update that the range had held onto the status because it believed there would be “little meaningful impact” from the takeover on the range and the wider business.
Liontrust announced in July the £75m acquisition of Architas’s UK division which will see its multi-manager range jump from £1bn assets under management to £6.6bn.
Architas’s funds will be renamed under the Liontrust brand with John Husselbee (pictured) becoming head of the enlarged multi-asset unit while Sheldon Macdonald, who is from the Architas side, will become deputy head of multi-asset.
Square Mile said: “Currently, there are no planned changes to either the investment philosophy or the way the funds are managed. The lead manager of the range, Nathan Sweeney, along with other members of the UK investment business will move to Liontrust as part of this deal.
“The completion of the acquisition remains subject to regulatory and shareholder approval and is expected before the end of the year. Square Mile will continue to monitor developments and provide further updates in due course.”
Invesco fixed income range holds onto ratings despite team reshuffle
Square Mile also kept its ratings unchanged on the Invesco fixed income funds after the firm announced Paul Read is to take a step back from a chunk of his portfolio management duties as the fund group continues its wide-ranging review of its investment desk.
As part of the reshuffle, Read has been dropped as a named manager on the £2.3bn Invesco Monthly Income Plus fund, as well as the £2bn Distribution and £611.9m Tactical Bond funds, all three of which he ran with Paul Causer and Ciaran Mallon.
Despite this, the Invesco Corporate Bond fund has kept its AAA rating, Invesco Tactical Bond has held its AAA rating, Invesco Monthly Income Plus retains its AA rating and Invesco Distribution remains AA rated.
Square Mile said: “The fixed interest team will continue to be headed by Paul Causer and Paul Read and Square Mile sees these developments as a natural evolution of responsibilities. These promotions reflect their contribution to the team and process over a number of years.
“While the highly experienced Paul Read has been removed as a named co-manager on three of the funds, he remains integral to the business and his expertise will not be lost from the funds.”
Baillie Gifford Multi-Asset Growth wins back A rating
Square Mile has reinstated an A rating on the Baillie Gifford Multi-Asset Growth fund a year after it suspended the rating when the group’s team leader Patrick Edwardson announced his retirement.
It said had met with the remaining team members on several occasions and is satisfied they have the necessary experience and resources to be able to deliver on the fund’s longer term investment objectives.
Square Mile suspended the rating in July 2019 after team leader Edwardson announced his retirement. Edwardson retired in April this year.
Soft-closed Polar Capital Global Technology keeps A rating
Elsewhere, the Polar Capital Global Technology fund has kept its A rating after it was soft closed on 13 July. Square Mile said barring new investors from accessing the fund and blocking requests to purchase on platforms will allow the two co-managers, Nick Evans and Ben Rogoff, to focus on managing the assets already in the strategy and to continue to provide a high level of service to existing clients.
“[Soft closure] does not reflect any immediate concerns with the size of the fund or Mr Evans’s ability to trade stocks in the market,” it said. “However, soft closing the fund will allow the managers to remain nimble in their allocation to smaller and medium sized companies. Square Mile retains its full conviction in the strategy and its managers and the fund maintains its A rating.”
Allianz and Fidelity bond funds pick up ratings
The Allianz Strategic Bond fund has been awarded an AA rating. Square Mile said the managers’ “abilities have been clearly demonstrated by the strong returns they have delivered, with a close to zero correlation to equities, across different market environments”.
In addition, the Fidelity Short Dated Corporate Bond fund has been awarded an A rating on account of the “relatively simple nature of the fund and the consistent process which the manager employs”.
The updates come after Square Mile conducted 76 interviews with investment professionals from 29 asset management groups throughout July.
