Launched in 2011, the fund is managed by Kevin Murphy and Andrew Evans and invests in a diversified portfolio of UK companies.

Joseph Hill, HL senior investment analyst, said that the fund could diversify an income-focused portfolio or offer value exposure to a more general portfolio.

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“We think Murphy and Evans have the experience and support to deliver good long-term returns to patient investors, although there are no guarantees,” he said. “We also have a positive view of the collegiate approach, capability and experience of the 12-strong value team the managers form a part of.”

Murphy has been at Schroders since 2000, joining as an equity analyst before managing money since 2006. He has run the Schroder Income fund since launch.

Meanwhile, Evans joined the firm in 2015 as a member of the global value team. He became a named manager on the strategy in November 2022.

According to FE Fundinfo, the strategy has returned 33.5% over three years against the IA UK Equity Income sector average of 20.2%.

This article was written for our sister title Portfolio Adviser

The strategies, including the BNY Mellon Global Dynamic Bond, BNY Mellon Sustainable Global Dynamic Bond and BNY Mellon Global Dynamic Bond Income fund, were placed under suspension in June 2023. Ella Hoxha, formerly at Pictet, took over as fund manager in December of last year.

Square Mile stated that after meeting with Hoxha and discussing the changes to the portfolios, its team believes “it will take time to fully appreciate the impact of those changes”. In addition, Square Mile found the medium-term returns “not in line with expectations”, resulting in the funds’ removals.

Jupiter Value funds, including the AAA-rated Jupiter UK Special Situations fund and A-rated Jupiter Global Value Equity fund, were suspended after Ben Whitmore and Dermot Murphy announced their departure for July 2024 to create their own investment boutique. While JO Hambro Capital Management’s Alex Savvides will take on the UK equities portion of the funds, there is still discussion over the global equity assets and whether they will transfer with Whitmore, Square Mile said.

See also: RLAM and Artemis funds added to Square Mile academy

Despite the three funds dropped from BNY Mellon, the BNY Mellon Futurelegacy fund range gained a responsible Positive Prospect rating. The group of five funds are managed by Newton Investment Management and launched in February of last year.

“In what is an under-represented area of the market, Square Mile believes this range has all the attributes necessary to provide competitive long-term returns while following the team’s sustainable investment approach,” Square Mile stated.

The Brown Advisory Global Leaders fund was awarded an AA rating, managed by Mick Dillon and Bertie Thomson. The fund, launched in 2015, comprises 30 to 40 holdings which Square Mile claims is “differentiated from its peers and a very solid offering for long-term investors”.

Aikya Global Emerging Markets gained a Responsible A rating while Rathbone Greenbank Multi-Asset portfolios obtained a responsible recommended rating.

Three strategies, the CT UK Social Bond fund, Artemis SmartGARP Global Emerging Markets Equity fund, and WS Montanaro UK Income fund retained their ratings despite changes in management.

In total, Square Mile conducted 52 interviews with 31 asset management groups in the month of January.

This article was written for our sister title Portfolio Adviser

The Royal London Sustainable Leaders fund was marked with a ‘Responsible AA’ rating, while the Artemis SmartGARP Global Emerging Markets and Jupiter Global Value Equity funds were both awarded A ratings.

The Embark Horizon fund range had its recommended rating rescinded following its announcement that the range will be moving from Columbia Threadneedle Investments to BlackRock during the first quarter of 2024.

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“Whilst the analysts acknowledge the strong resources at BlackRock, they believe the best course of action is to remove the rating while the new team establishes its process and builds its track record,” Square Mile said.

The Royal London fund, which is managed by Mike Fox, received its ‘Responsible AA’ rating on 12 December for being “long-term, disciplined and risk-averse in nature”.

“Mr Fox has a clear focus on investing in high quality companies that are both helping the transition to a more sustainable future and that he believes can generate strong financial returns,” Square Mile stated.

While three funds were placed under review during December, only the Pyrford Global Total Return fund retained its rating, while the Matthews Asia Pacific Tiger fund found its AA rating suspended.

See also: Square Mile: Advisers switch to income funds

The Troy Income & Growth trust had it’s A rating suspended.

The Matthews fund was placed under review when lead portfolio manager Sharat Shroff announced his departure for the end of 2023. Square Mile said due to the changes in leadership, its analysts plan to “meet with the current lead manager InBok Song and Sean Taylor to discuss the changes to the team and will update investors in due course”.

Following the intention to combine the Troy Income & Growth trust with the STS Global Income & Growth Trust, Square Mile announced it will aim to make a concrete decision on the fund during March 2024, once the regulatory clearances and documentation of the combination reaches shareholders in February.

In the whole of 2023, Square Mile admitted 38 funds to its academy, including 18 investment trusts.

This article was written for our sister title Portfolio Adviser