Analysts at Square Mile Investment Consulting and Research (Square Mile) conducted 78 interviews with investment professionals from 41 asset management groups during May 2025. Based on the intelligence gained during these meetings and in light of recent corporate announcements, the following actions have been taken:
New ratings
TwentyFour Income and TwentyFour Asset Backed Opportunities funds awarded AA and A ratings
Square Mile’s team of analysts have introduced two new strategies into the Academy: TwentyFour Income fund (AA rating) and TwentyFour Asset Backed Opportunities fund (single A rating).
These strategies leverage on TwentyFour AM’s expertise in managing ABS strategies, providing higher yielding options to higher quality ABS strategies such as the AA-rated TwentyFour Monument Bond fund. These higher-octane versions offer potentially higher returns over the long term, albeit with higher expected volatility and drawdowns.
The TwentyFour Income fund is a high yield investment trust focused on the European ABS market. It provides exposure to non-rated bonds and private assets that are illiquid and which would not therefore be suitable for a daily dealing open ended fund.
TwentyFour Asset Backed Opportunities Fund, also dedicated to the European ABS market, is an open-ended fund which provides exposure to high yield bonds, but avoids private assets and non-rated bonds, aiming for an average investment grade credit rating. The analysts have assigned a single A rating due to its relatively short track record and smaller asset base with growing but still incipient client base. (Decision as at 07.05.25)
Premier Miton Tellworth UK Select fund awarded A rating
Square Mile has awarded the Premier Miton Tellworth UK Select fund an A rating and it enters the Academy of Funds. This strategy combines both long and short investments in equities, predominantly in UK mid-cap and large-cap companies, and exhibits all the main characteristics that Square Mile’s analysts regard as desirable in an absolute return fund. It is managed at all times to be close to market-neutral in net exposure and, as a consequence, has an impressive record of protecting investors’ capital when stock markets sell off. Unsurprisingly, the fund’s returns are also uncorrelated to those from broad stock market indices. The dominant driver of performance is stock selection and it has an excellent record of generating returns from both long and short investments.
The analysts believe that the fund’s impressive track record, strong risk management framework and the portfolio managers’ experience and proven expertise make it a very attractive offering for investors seeking absolute returns. (Decision as at 07.05.25)
Rating retained
Goldman Sachs Emerging Markets Equity Portfolio fund retains A rating
It was recently announced that Hiren Dasani, co-manager of the Goldman Sachs Emerging Markets Equity Portfolio fund, will be departing the business after 18 years with the firm, with his current co-manager, Basak Yavuz, assuming full responsibility for the strategy. Square Mile’s analysts will meet with Ms Yavuz in the coming weeks and will share any relevant updates following that discussion.
At this stage, the analysts do not anticipate any material changes to what is a well-established, team-based investment process, which has been in place since 2013. Consequently, they feel comfortable in maintaining the fund’s A rating. (Decision as at 19.05.25)
Suspended ratings
Baillie Gifford Shin Nippon PLC and Baillie Gifford Japanese Smaller Companies funds’ ratings suspended
Following the announcement that Praveen Kumar, lead manager of Baillie Gifford Shin Nippon PLC and the Baillie Gifford Japanese Smaller Companies fund, will be leaving the firm, Square Mile’s analysts have suspended the A rating on both vehicles. Brian Lum, previously deputy manager of the Trust, will assume the role of lead manager on both strategies. He will be joined by Jared Anderson, co-manager of both the Baillie Gifford Japanese Fund and the Japanese Smaller Companies Fund, and deputy manager of the Shin Nippon Trust.
In light of these changes to the management team, the analysts believe it is prudent to suspend their rating while they assess the potential future implications for the strategies. (Decision as at 28.05.25)
BNY Mellon Real Return fund: A rating suspended
On the news that Andy Warwick, co-lead manager of the BNY Mellon Real Return fund is leaving the firm, Square Mile’s analysts have suspended the fund’s A rating. Aron Pataki, who co-managed the fund alongside Mr Warwick will remain on the strategy and be joined by Ella Hoxha, Head of Fixed Income at Newton Investment Management (NIM) and lead manager of the Global Dynamic Bond products. Brendan Mulhern, strategist within the Real Return team, is also leaving the firm.
These changes are among a number involving the leadership of the fund and broader NIM business over recent years. The analysts therefore believe it is prudent to suspend the fund’s rating while they assess the implications of the most recent developments for this strategy in future. (Decision as at 23.05.25)
Rating removed
Downing European Unconstrained Income fund loses Positive Prospect rating
Square Mile has taken the decision to remove the Positive Prospect rating held by the Downing European Unconstrained Income fund. This follows the news that the strategy is being transferred to Tyndall Investment Management where it is expected to be renamed the VT Tyndall European Unconstrained fund. Square Mile’s analysts acknowledge that the fund is being transferred across in its entirety, including its portfolio managers, Mike Clements and Pras Jeyanandhan, and that the investment philosophy and process will remain unchanged.
However, given the uncertainty that this move creates in terms of a new corporate environment and support surrounding the strategy, the analysts feel they can no longer retain their conviction in the fund’s rating. (Decision as at 08.05.25)
