Square Mile includes investment trusts in Academy of Funds for the first time
Square Mile has assessed investment trusts in the past as part of its consultancy process, but this is the first time this side of its research has been made publicly available.
The Academy of Funds is a showcase of portfolios the research company is prepared to recommend to clients. The recommended funds will carry a rating — A, AA, or AAA — as a mark of quality and a reflection of the level of conviction Square Mile has in a fund's ability to deliver on expectations.
There is also a Responsible Ratings category, which is awarded to the funds which the company feels are the «best in class in their field and which deliver from both a financial and responsible investment perspective», and a P+ Positive Prospect tag for when analysts see potential to join the final list.
Liontrust UK Equity fund loses Square Mile A rating amid de Uphaugh and Fields retirement
Square Mile has assessed investment trusts in the past as part of its consultancy process, but this is the first time this side of its research has been made publicly available.
The firm explained that, alongside the traditional appetite for open-ended products, investors were also seeking out access to alternatives and private assets, which it said trust were well suited to provide exposure to these less liquid asset classes.
The trusts underwent the same qualitative research process as their open-ended peers, which involves regular face-to-face meetings with the manager or managers responsible for running the strategy, where the analysts assess a range of considerations, including the team and their environment, philosophy and process, risks, and performance profile, ESG integration and costs.
But there are additional elements of scrutiny due to the different
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