The Jupiter UK Special Situations and Jupiter Global Value Equity funds have had their respective AAA and A ratings suspended in the latest monthly rebalance.
Whitmore managed the special situations fund, while Murphy managed the global value portfolio, and both are set to leave the firm in July 2024 to establish an independent investment boutique.
JO Hambro’s Savvides to take on Jupiter UK special sits as Ben Whitmore departs to launch boutique
Alex Savvides will join Jupiter from JO Hambro Capital Management in the late summer to take on management of the special situations fund.
However, Square Mile noted there has been no announcement for a replacement manager for the Global Value Equity fund, adding that discussions on whether they will transfer management of the vehicle to the new venture are ongoing.
“Square Mile’s analysts continue to monitor the situation closely and will provide updates on both strategies in due course,” the firm said.
Meanwhile, three BNY Mellon funds have lost their ratings following earlier suspensions.
The BNY Mellon Global Dynamic Bond, BNY Mellon Sustainable Global Dynamic Bond and BNY Mellon Global Dynamic Bond Income funds had their ratings suspended in June 2023, following the promotion of manager Paul Brian from head of fixed income to deputy CIO of multi-asset.
Ella Hoxha joined the firm from Pictet in December 2023 and replaced Brian as the funds’ manager.
Baillie Gifford and EdenTree funds lose Square Mile A rating
Square Mile’s analysts met with Hoxha and discussed portfolio construction changes she would be implementing. They argued “it will take time to fully appreciate the impact of those changes” and medium-term returns have not been “in line with expectations”.
Elsewhere in the rebalance, the BNY Mellon FutureLegacy fund range was allotted a ‘Positive Prospect Rating’ from Square Mile.
Analysts said that although the strategy is relatively new, the five funds within the range benefit from the “experience and expertise” of the multi-asset team at BNY Mellon affiliate Newton Investment Management, which also provides “long-standing responsible investment capabilities of the firm” for the portfolios.
“BNY Mellon’s scale and the directly invested nature of the portfolios mean that they can be offered at what the analysts feel is an attractive price point. In what is an underappreciated part of the market”, they added.
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The Brown Advisory Global Leaders joined the Academy for the first time, with an ‘AA’ rating.
Square Mile said the strategy of managers Mick Dillon and Bertie Thomson was “differentiated from its peers and is a very solid offering for long-term investors looking for a quality global equity strategy”.
The Aikya Global Emerging Markets fund also received its first rating, gaining a ‘Responsible A’. Analysts considered it a “solid long-term proposition for investors”, which is overseen “by a group whose sole focus is on investing in emerging market equities in a responsible manner”.
“Additionally, they note that its London-based team has built a comprehensive and robust investment philosophy and process,” they said.
The final new rating was given to Rathbone Greenbank Multi-Asset Portfolios, which achieved a ‘Responsible Recommended Rating’.
Square Mile said that despite the range’s short history, the management team had “built an impressive track record” on the firm’s flagship Multi-Asset Portfolio range.
The team’s collaboration with Greenbank “gives the range significant credibility”, the analysts said, who described it as a “robust option” for investors seeking a multi-asset strategy with targeted sustainability criteria.
AXA Framlington shakes up management of £600m UK Select Opportunities
AXA Framlington UK Select Opportunities was shifted from an ‘A’ to a ‘Positive Prospect’, after its former lead manager Chris St John swapped roles with existing deputy manager Nigel Yates.
This move would “ensure continuity”, according to the analysts, and was enough to reassure them the fund’s current investment thesis would remain in tact.
“Therefore, [we] have sufficient conviction in the fund to award it a Positive Prospect rating at this time,” they said.
Three funds managed retained their ratings after a series of management changes.
The CT UK Social Bond, Artemis SmartGARP Global Emerging Markets Equity and WS Montanaro UK Income have all retained their ‘A’ ratings.
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