Square Mile keeps ratings on Invesco fixed income and Architas multi-asset ranges
Ratings retained
Square Mile Investment Consulting and Research has retained its ratings for Invesco's fixed income funds and Architas' multi-asset offerings, amid management changes on the former and Liontrust's acquisition of the latter.
Co-head of Invesco's fixed income team Paul Read stepped back from management duties on a trio of its fund range, with promotions to co-manager for a number of the team's analysts and portfolio managers.
Four funds in the range have positive ratings from Square Mile, with the £3.4bn Invesco Corporate Bond and £612m Invesco Tactical Bond funds holding AAA ratings, and the £2.3bn Invesco Monthly Income and £2bn Invesco Distribution funds having AA ratings.
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Square Mile noted the fixed interest team would continue to be led by Read and Paul Causer, with the promotions seen as "a natural evolution of responsibilities".
"While the highly experienced Read has been removed as a named co-manager on three funds, he remains integral to the business and his expertise will not be lost from the funds," Square Mile's analysts said.
In addition, Liontrust confirmed the £75m purchase of Architas's UK investment business from French insurer AXA at the start of July.
While Square Mile's analysts "acknowledged the corporate change", they reasoned there would be "little meaningful impact on the UK investment business in the near term and in particular on the multi-asset active fund range", on which the consultancy firm has a 'Recommended' rating.
"Currently, there are no planned changes to either the investment philosophy or the way the funds are managed," the analysts pointed out.
"The lead manager of the range, Nathan Sweeney, along with other members of the UK investment business will move to Liontrust as part of this deal."
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Elsewhere, Square Mile gave new ratings to a pair of bond funds. The £2.1bn Allianz Strategic Bond fund, headed by Mike Riddell and Kacper Brzezniak , was awarded an AA rating.
The analysts said it held the "fund's managers and their unconstrained, contrarian and high conviction approach in high regard".
"Their abilities have been clearly demonstrated by the strong returns they have delivered, with a close to zero correlation to equities, across different market environments. In Square Mile's view, this provides an attractive source of diversification for investors' portfolios."
The £159m Fidelity Short Dated Corporate Bond fund, meanwhile, has been given an A rating. The fund, which leverages the firm's existing resources across the sterling corporate bond market with strategies, aims to deliver capital growth and income in a low risk manner, with a focus on high quality short dated bonds.
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