Square Mile downgrades Aviva Equity Income following manager departure

investmentweek.co.uk:

The Aviva Investors UK Listed Equity Income fund saw its rating scrapped after the departure of its co-manager James Balfour.

The abrdn Global Inflation-Linked Bond fund and abrdn Short Duration Global Inflation-Linked Bond fund, both managed by Adam Skerry and Tom Walker, have lost their ratings.

«Given the continued limited active risk in these funds, [Square Mile] no longer believe they provide a compelling enough case for active management in this asset class,» the firm said.

The Aviva Investors UK Listed Equity Income fund also saw its rating cut following the departure of one of its managers, James Balfour.

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Hargreaves Lansdown previously cut the fund from its Wealth Shortlist last month following long-time co-manager Chris Murphy's leave of absence.

Head of UK equities for Aviva Investors Trevor Green is currently acting as interim portfolio manager of the fund, supported by portfolio manager Charlotte Meyrick, but Square Mile said it believed the management changes «to be material».

Meanwhile, two funds, the Fidelity Short Dated Corporate Bond and Fidelity Sustainable Moneybuilder Income funds, saw their A ratings reinstated, after they were suspended in January following the retirement of lead portfolio manager Sajiv Vaid.

Since then, Square Mile said their analysts had been «pleased with the continuity of management» through the funds' long standing manager Kris Atkinson and the addition of Shamil Pankhania.

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However, Vaid's other fund, the Fidelity Extra Income fund, has seen conviction in the fund «waning for some years», the firm said.

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