Both vehicles are managed by Roland Arnold, who seeks to invest in high quality, growing businesses.

Square Mile analysts said they consider Arnold to be a “pragmatic” investor who has proven to be adept in adjusting the risk profile of the strategy underlying both the fund and the trust at appropriate times during the market cycle.

The £633.1m BlackRock Smaller Companies Trust currently trades at an 11.7% discount to net asset value (NAV), according to the AIC.

Analysts at Square Mile conducted 66 interviews with investment professionals from 37 asset management groups during February.

Elsewhere, the Janus Henderson Global Equity Income fund has lost its A rating after a period of “challenged” performance.

According to FE Fundinfo, the strategy has returned 43.5% over the last five years compared to the IA Global Equity Income average 52.3%.

The analysts noted that the fund has always taken an approach that is highly defensive, non-cyclical and with a focus on income.

“However, its total return profile has not met [analyst] expectations and [Square Mile] no longer have sufficient conviction in the strategy to justify its continued inclusion in the Academy of Funds,” they said.

Matthews Asia Pacific Tiger fund has also been stripped of its A rating, having previously had its rating suspended in December following the departure of manager Sharat Shroff.

Shroff was replaced by Inbok Song as lead manager, who works alongside the firm’s CIO Sean Taylor.

The Square Mile analysts said: “Ms Song and Mr Taylor are in the process of re-invigorating the strategy, which includes adjusting the portfolio construction process. Although Square Mile’s analysts believe this to be a sensible course of action, as yet it is unproven.”

Schroder US Equity Income Maximiser and Schroder Income Maximiser funds have both retained their A ratings, despite the recent departure of manager Mike Hodgson.

Co-manager Scott Thomson was appointed as head of the team. Square Mile said its analysts have a high regard for Thomson and confirmed the two funds’ ratings would remain unchanged.

Similarly, UBAM Positive Impact Equity fund has retained its ‘Responsible A’ rating despite senior portfolio manager Rupert Welchman’s decision to exit the firm in April.

Despite his departure, the Square Mile analysts believe the team is well resourced and they have a high regard for the strong team-based process underpinning the strategy.

This article was written for our sister title Portfolio Adviser

While investing in China, or any emerging market, is a long-term game, the story over three and five years is just as stark, with the sector down 49% and 16.5%, respectively. The economic picture is just as uninspiring, as China faces the prospect of lacklustre growth in 2024, with GDP expected to grow 4.5% in real terms, compared with 5.2% in 2023 and 6+% levels in the years before the Covid pandemic. It is little surprise then, with funds under management of just £3.7bn, according to the IA over the course of 2023 to November, the IA China/Greater China sector saw outflows of close to £188m.

So as all eyes focus on China as it enters the year of the dragon, is it really all bad news? In this  head to head, James Klempster (pictured left), deputy head of the Liontrust multi-asset team, explains why he is becoming more optimistic towards China, while Andrew Mattock (pictured right), portfolio manager at Matthews Asia, calls for patience from investors.

James Klempster, deputy head of multi-asset, Liontrust

As long-term, disciplined investors, we are focused on identifying investment opportunities rather than being distracted with macro stories. While a positive economic backdrop should provide a tailwind to markets, fundamentally poor investments are unlikely to prove rewarding, even with a metaphorical gale at their backs.

Over the past 20 years, investors in Chinese stocks have regularly conflated a positive view on the economy with a positive view of the stockmarket, but history has often shown this to be a poor strategy. There are many hazards that can impact markets even against a benign, positive macro backdrop. Important factors to consider include corporate governance: whether there is a genuine culture of rewarding shareholders, and whether capital controls could hinder your ability to retrieve your investment in the future. Even if the above factors are in your favour, investing at the wrong price can mean you’re pushing a rock uphill to get returns.

See also: Head to head: The prospects for global equities in 2024

Similarly, the separation of an investment case from the macro story is equally important when news flow is universally negative. While the Chinese economy is in the doldrums and experiencing an insipid recovery, it does not necessarily follow that the stockmarket should also be written off.

The draconian Covid lockdowns followed by a surprise reopening, political crackdowns on ostentatious wealth, education provision and the property sector have all led to a degree of growing caution among investors, catalysed by a flaring of geopolitical risks.

The combination of Covid, political and corporate developments have acted to rein in globalisation, with heightened geopolitical risk arising from tensions in the Middle East and the ongoing Russian-Ukrainian war further accelerating this contraction. On top of this, China faces demographic headwinds with a declining population and an ageing workforce.

Glimmer of hope?

However, not all economies are created equal, and a poor year for China will still see growth outstripping much of the developed world. The Chinese government continues to focus on improving GDP per capita and moving its economy steadily towards higher-margin, value-adding industries such as electric cars and other technologies.

The latter can, of course, cause alarm, stoking concerns surrounding national security, with governments such as the US having a sceptical view of Chinese technology giants. And while the frosty Sino-US relationship has thawed slightly of late, the US government clearly wants to reduce its reliance on Chinese inputs into its supply chains.

Emerging markets’ poor performance over the past two to three years has a lot to do with problems stemming from China. But now China has adopted a more pro-growth, stimulus-oriented stance, emerging markets could benefit from the relative appreciation of their currencies versus a weakening dollar. They will be further boosted by international strategic supply chains being re-opened.

We do not have direct exposure to Chinese equities through a dedicated fund: an important consideration in our portfolio construction is the avoidance of an over-concentration to any countryspecific risk. Instead, we prefer to access the market in our global diversified portfolios through allocations to Asia ex Japan and emerging markets funds.

Indeed, through our overweight positions in these regions, we are currently overweight in China. Undoubtedly, there are some interesting China managers, but for us to back these strategies, we would like to see a greater number of Asia ex China and emerging markets ex China funds to avoid doubling up on our Chinese allocation.

Overall, we believe valuations on Chinese stocks remain attractive and this will prove rewarding for investors against a more forgiving economic backdrop, as indeed it will for other emerging markets and Asia ex Japan. The main driver of returns will come from the re-rating of stocks from their lowly valuations, which should follow any shift in sentiment from the current levels of scepticism that is keeping a lid on pricing.

Andrew Mattock, portfolio manager, Matthews Asia

Last year was a disappointing one for Chinese equities and the Chinese economy overall. It’s disappointing, in our view, not just in the sense of the underwhelming recovery of Chinese consumer spending post-Covid lockdowns, but also due to the lack of any significant stimulus measures by the government.

Although the government did start to gradually loosen property purchase restrictions across most cities in China, the expectations of potential home buyers regarding future house prices and their own income levels have changed. As a result, these policy changes barely helped to arrest the slump in the real estate market. As the year progressed, investors gradually gave up on the idea that the Chinese central government would step in to engineer a stronger consumption rebound.

From what we can see, many entrepreneurs – whose animal spirits were curbed during the Covid period – are now hesitating to start any new investments in this environment. From a geopolitical standpoint, the highly anticipated Biden-Xi summit in San Francisco in November didn’t really impact the ongoing concerns of the market. And staying at the macro level, Chinese equites were a key exception in a November global equities rally that followed signals by US Federal Reserve chair Jay Powell that the US interest rate-upcycle was near an end.

Both domestic and international investors have had their confidence severely tested over the past three years. There is no ‘natural’ inflow into China’s market through pensions or retirement savings plans and that has left only selected groups of companies with strong cashflow and balance sheets being active in the market, buying back their own shares.

Although we don’t fully subscribe to the theory of a ‘Japanification’ of China, we believe the government needs to do a lot more to avoid this trap and the risk of a ‘lost decade’.

Looking ahead, we remain cautiously optimistic that there will not be further meaningful deterioration in the property market. While we do not expect significant warming of geo-relations, the current status quo of a more constructive post Apec posturing would be welcomed by the market. Patience is a virtue

Among the traditional drivers of Chinese economic growth, aside from real estate, the export sector is still demonstrating some strength. However, as China grows its share of global industrial output, it raises the spectre of more trade frictions alongside continuing US tariffs.

In terms of consumption, the third economic driver, Chinese consumers are likely to continue to behave very conservatively due to a lacklustre employment market and bleak outlook for income growth. Industries with high-paying jobs have unfortunately become casualties of tightened regulation and some have been subject to pay-cut directives from the government.

Valuations continued to trend down in 2023, and the broader China market hovers around similar levels as 2009, despite a better-quality businesses and earnings profile.

We continue to believe that patience is needed in these market environments and that it will ultimately pay off once the market turns. In the current environment, we continue to stick to our knitting and deliver a consistent growth at a reasonable price strategy for our clients.

This article was written for our sister title Portfolio Adviser’s February magazine.

After 22 years at the Swiss financial services giant, Zeno Staub will step down as chief executive at the next shareholders general meeting on 9 April 2024, in order to become more actively involved in Swiss civil society.

Staub’s successor as chief executive is to be determined by the end of 2023.

Also, Felix Lenhard, chief operating officer and a member of the executive committee of

Vontobel Holding AG and of Bank Vontobel AG, will step down from his role at the end of 2023.

This will allow him, among other things, to devote more time to his family in the future.

His successor will be determined by the end of 2023.

Lazard Asset Management

Middle East chief executive Farah Foustok is leaving her role at the asset manager, a spokesperson has confirmed.

Foustok joined the firm in 2014.

Fadi El Haddad will assume responsible for Middle East operations in the interim.

Progeny

The financial planning group has named Sam Murton as chief operating officer.

She has been working with Progeny as a consultant since 2022.

Murton has worked with a diverse range of businesses and sectors, including Aegon, easyJet, Three, Orange (EE) and Next.

Sesame Bankhall Group

Paul Wilson has been appointed as chief operating officer at the adviser network.

Wilson joins from Aviva, where he was chief marketing officer at Aviva.

Currently a non-executive director of SBG’s board, Wilson will officially start his new role on 3 July.

He replaces Richard Howells, who left the business.

Weatherbys

Chief executive Roger Weatherby is to step up to the role of chairman at the banking group.

Roger Weatherby, who was appointed chief executive in 2000, will take over from current chairman David Bellamy.

Bellamy will step down in March 2024 after six years in the role.

Quentin Marshall, the current managing director of Weatherbys Bank, will take over as chief executive of Weatherbys Banking Group from September 2023.

Armstrong Watson Financial Planning

Stewart Crockett has been appointed managing director and partner of the advice firm.

Crockett joins Armstrong Watson after 23 years with Close Brothers Asset Management, where he was managing director.

The firm also announced senior financial planning manager Justin Rourke has been promoted to financial planning director – head of advice.

Walker Crips Investment Management

Alan Kinnaird has joined the company as business development manager.

He has worked in financial services for 27 years, with the last three years as a senior private banker at Kleinwort Hambros Private Bank.

Matthews Asia

Beonca Yip has joined the investment management firm as head of Asia Pacific.

Yip previously led the distribution and client service teams at China Asset Management, where she was managing director, head of global client group.

Morgan Stanley Investment Management

Michael Levin will be joining the company as head of Asia.

The role is a newly created position and Levin is expected to join the firm in July.

Levin has been in the industry for over 25 years and was most recently managing director at Goldman Sachs Asset Management.

Lombard Odier

The international wealth and asset manager has appointed Amit Ben Sira as market head Israel.

Ben Sira joins from family office Globe Invest, where he was head of private assets.

ValidPath

The IFA network has appointed Tim Clark as succession director.

Clark joins from M&G, where he was recruitment and acquisition director.

Withers

The international law firm has grown its Swiss practice, based in Geneva, through the addition of partner Berry Bloomberg, who joins the firm from Burges Salmon.

Bloomberg is a tax and trust specialist, representing clients on asset holding structures, the taxation of offshore trusts and companies and negotiating tax disclosures with tax authorities. His clients include internationally mobile individuals and families, trust companies and financial institutions and he has a particular focus on helping clients with US connections.

Schroders Personal Wealth (SPW)

The advice firm has appointed Justin Blower as regional director for the south and south Wales.

He will be responsible for leading SPW’s advice business across the region including Bristol, Cardiff, Oxford and the south West.

Prior to joining SPW, Blower held the role of sales director at M&G Wealth.

HSBC

The banking group has appointed Kai Zhang as the head of its wealth and personal banking (WPB) team for south Asia.

Zhang, who is based in Singapore, will take on her role from 26 June.

As part of her role, Zhang will look at accelerating the WPB team’s expansion in south Asia across eight markets: Singapore, India, Taiwan, Australia, Malaysia, Indonesia, Vietnam and the Philippines.

Zhang joins HSBC with over 25 years of financial services experience in North America and Asia, including leadership roles at Citi and McKinsey & Co.

Liontrust

The asset management company has appointed Victoria Stevens and Matt Tonge as fund managers of the Liontrust Special Situations and Liontrust UK Growth funds, joining existing managers Anthony Cross and Julian Fosh.

They were founding fund managers of the Liontrust UK Micro Cap Fund when it was launched in March 2016. They have also been fund managers of the Liontrust UK Smaller Companies Fund since 2016.

Square Mile

David Holder has been named as senior investment research analyst at the firm.

Holder joins from Edison Group, where he was an associate director.

Collidr

The digital asset manager has appointed Barry Cowen and Bradley Mitchell as senior investment strategists.

Cowen joins Collidr having spent the past 10 years running the Model Portfolio Service at Sanlam Wealth (now Atomos), and

Mitchell re-joins Collidr after a period as portfolio manager at Criterion Capital.

The investment platform has named Michael Summersgill as chief executive.

Summersgill has been with AJ Bell since 2007 and is currently deputy chief executive. He has also held the position of chief financial officer since 2011. As previously announced, he will be succeeded as chief financial officer by Peter Birch on 1 July 2022.

He will succeed Andy Bell on 1 October 2022, subject to regulatory approval.

Bell will remain on the AJ Bell Board and will assume the position of non-executive deputy chair with effect from the same date.

Matthews Asia

The investment firm has named Cooper Abbott has been appointed chief executive.

Most recently, Abbott served as president and chairman at Carillon Tower Advisors, where he founded and built a global multi-boutique asset management company providing equity, fixed income and multi-asset class solutions to a range of institutional and retail investors.

He succeeds William Hackett who, as previously announced, will retire as chief executive and a member of the board of directors on 30 June 2022. He will continue to serve as an adviser to Matthews Asia during this transition period in order to assist in the transfer of responsibilities.

Butterfield Group

Karim Chowdhury has joined the group as vice president in private banking, according to his Linkedin profile.

He will be based in Bermuda.

Chowdhury was previously at Schroders Personal Wealth, where he was strategic partnership development manager.

Suntera Global

The financial services provider has appointed Dan Bisson as managing director of its operations in the Channel Islands.

He was previously managing director of Nedgroup Trust, which was acquired by Suntera Global in April 2022.

Carrick Wealth

The advice group has named Fred van Niekerk as the general manager of Carrick International.

He has been with the Carrick Group since its inception in 2014, working initially as an adviser, then director and regional head of Western Cape, then going on to lead the Carrick Partners business division as its general manager.

Abbey Wealth

Rosie Edwards has been hired as head of programme management at the European advice firm.

She will lead the planning, implementation and reporting on all corporate project and programme activity in Ireland, Spain and Switzerland.

Edwards was previously at UK advice firm Succession Wealth.

MFSA

The Maltese regulator has announced that Michelle Mizzi Buontempo will be acting chief executive.

The MFSA said that current chief executive Joseph Gavin is “currently indisposed”.

She will take over responsibilities of Gavin during his absence.

Natixis Investment Managers

The asset manager has appointed Marco Barindelli as head of Italy.

He joins Natixis IM from Schroders Investment Management, where he worked for over twenty years holding various senior sales roles across different client segments.

Close Brothers Asset Management (CBAM)

The wealth firm has hired five senior investment professionals to bolster its operation in the south east of England.

James Nield joins as a managing director. Robert Clough, Tim Harman and Simon Heathcoat Amory join as investment directors, with Joe Boxall joining as investment manager.

They join CBAM from Sanlam Private Wealth and Rathbones. They are currently based across London and Chichester.

IM Global Partner

Jackie Mills has been named as managing director and chief marketing officer.

She was previously head of international marketing for Eaton Vance.

Allspring Global Investments

The independent asset manager has appointed Charlie Wilson as head of financial institutions for the UK and Switzerland.

Before joining Allspring, Wilson worked as head of European accounts at PGIM Investments.

UBS

The Swiss private bank has announced three additions to its Thailand and Philippines business.

It has hired Maria Quintos as senior client advisor in its Thailand team.

Quintos will be located in Singapore focusing on ultra high net worth relationships.

Prior to joining UBS, Quintos was the president and chief executive of Maybank ATR Kim Eng Capital Partners.

Meanwhile, Nicolo Nicandro and Natalie Boey have joined the UBS Philippines team as client advisers.

The duo will also be based in Singapore.

Nicandro was previously senior associate, investment counsellor at Bank of Singapore in Manila, where he managed global multi-asset portfolios of private clients. Boey was at a similar role previously with Citi Singapore for almost 15 years.

IQ-EQ

The financial services firm has promoted Jersey-based Marisa Warren to regional head of onboarding and implementation for the UK, Ireland and the Crown Dependencies.

Marisa joined IQ-EQ in June 2019, having previously been a vice president and board director of State Street Administration Services (UK) Limited, where she was responsible for all aspects of client servicing for private equity funds.

Evelyn Partners

The wealth manager has appointed Ricky Wilson as a financial planner in the firm’s Bracknell office.

Wilson joins Evelyn Partners from Wesleyan, where he was a specialist financial adviser providing financial planning services tailored to meet the needs of doctors.

The investment firm has confirmed its top-performing manager Tiffany Hsiao is leaving the firm next week along with two deputy managers to pursue other opportunities.

Hsiao, who is lead manager of the Matthews China Small Companies and Matthews Asia Small Companies strategies, will leave the firm on 31 August.

It also confirmed Beini Zhou and Yuanyuan Ji will leave the company on the same day.

Zhou is deputy manager on the Asia Small Companies fund while Ji is deputy on the China strategy.

The China Small Companies strategy will be taken over by Winnie Chwang and Andrew Mattock as co-lead managers.

The duo currently manages the core Matthews China strategy which has outperformed its benchmark over one, three and five years.

Vivek Tanneeru, who currently manages Matthews Asia’s Asia ESG strategy, will take over the Asia Small Companies fund.

India Capital Growth Fund

It has hired Patrick Firth to join its board and become chairman of the audit committee.

Firth qualified as an accountant with KPMG and has worked in the investment and funds industry in operations and management in Guernsey for nearly 30 years.

John Whittle is standing down as chairman of the audit committee and from the board.

The Financial Ombudsman Service

Dame Gillian Guy has been appointed as its independent assessor.

The independent assessor reviews complaints about the level of service provided by FOS.

Guy will start her role in October.

She has been chief executive of Citizens Advice for the last 10 years.