Baillie Gifford and EdenTree funds lose Square Mile A rating

investmentweek.co.uk:

In November, two strategies also retained their ratings from Square Mile.

Square Mile analysts said the Baillie Gifford fund's relative performance had «disappointed for several years», leading to a loss in conviction in the strategy, as they noted an increasingly competitive peer group.

Square Mile downgrades Aviva Equity Income following manager departure

EdenTree's sustainable fund lost its A rating following the exit of manager Ketan Patel. Although Square Mile analysts said they do not envisage a «significant deviation» under manager Greg Herber, they argued he will apply a different approach. The analysts added they will wait and see how the changes «bed in».

The Academy of Funds issued four new ratings in November, with the Wellington Global Impact fund awarded a responsible A rating due to the strategy's «clear positive» impact and its managers' philosophy of investing in companies providing «sustainable solutions to the biggest environmental and social problems facing the global economy».

It was launched in 2016 and is managed by lead portfolio manager Jason Goins and deputy Tara Stilwell.

Aegon High Yield Bond was given an A rating, with Square Mile analysts noting how the «impressive» manager duo — Tom Hanson and Mark Benbow — alongside Aegon's fixed income team, have «consistently outperformed» the wider market during their tenure on the fund.

Aubrey Global Emerging Markets Opportunities was also awarded an A rating, as analysts deemed it an «attractive proposition» for long-term investors seeking a differentiated exposure to emerging markets.

The fourth fund to be added to the Academy was the abrdn Global Government Bond Tracker fund, which achieved a recommended rating. Square Mile noted that, since