Bond funds shone in Square Mile’s Academy of Funds ratings roundup for December, with a quintet of strategies upgraded from an ‘A’ to an ‘AA’.
- – M&G UK Inflation Linked Corporate Bond Fund
- – TwentyFour Absolute Return Credit Fund
- – Invesco Tactical Bond Fund
- – TwentyFour Strategic Income Fund
- – Janus Henderson Fixed Interest Monthly Income Fund
Square Mile said: “Analysts believe the management teams and investment processes at play within these strategies to be of an extremely high calibre and these upgrades reflect this high level of conviction.”
The research firm also downgraded BNY Mellon’s Global Dynamic Bond fund from AA to A, while its Sustainable Global Dynamic Bond fund was revised to a ‘Responsible A’ from ‘Responsible AA’.
“The analysts continue to believe that these are solid offerings within the lower risk end of the IA Strategic Bond sector. However, their conviction has been tempered over recent years as the funds’ active allocation and return profiles have not met their expectations for defensive strategies,” Square Mile said.
The firm’s analysts carried out 53 interviews with industry professionals from 35 asset management groups over the course of the month, which fed into its decisions on ratings.
Two added to the Academy of Funds
Two funds have been added to the academy for the first time, taking the total number of strategies welcomed in 2022 to 20.
Janus Henderson Global Sustainable Equity has been awarded a ‘Responsible A’ rating, with Square Mile citing the experience of portfolio managers Aaron Scully and Hamish Chamberlayne as a key reason for the award.
UBAM Positive Impact Emerging Equity has also been welcomed into the Square Mile Academy with a ‘Responsible A’ rating. The fund, launched in May 2020, was commended for its “clear and thorough” investment process and its approach to researching opportunities in different markets.
Square Mile said: “The analysts believe this fund to be one of the few compelling long-term impact focused strategies currently available. The commitment of governments to achieving the UN Sustainable Development Goals by 2030 will require significant investment in innovation and the fund is well-positioned to benefit from this trend as it seeks to invest in companies providing solutions to these challenges.”
See also: Square Mile: Multi-asset funds to watch