Square Mile downgrades two Fidelity funds

River & Mercantile European upgraded

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On news manager Michael Clark is to retire at the end of 2022.

On news manager Michael Clark is to retire at the end of 2022.

Analysts at Square Mile have downgraded the Fidelity MoneyBuilder Dividend and Fidelity Enhanced Income funds, on the news long-time manager Michael Clark is to retire at the end of 2022.

The downgrade, to ‘positive prospect' from A rating, reflects the loss of experience Clark brings to the fund, Square Mile explained.

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It also reflects the analysts' confidence co-manager Rupert Gifford, who will assume lead manager responsibilities from 2nd January 2023, will continue to apply the same long-standing investment approach. 

In the same rating review, Square Mile upgraded River & Mercantile European fund from a positive prospect to an A rating.

Analysts at Square Mile believe the fund offers investors "access to a skilful manager who combines a business cycle approach with bottom-up stock analysis". 

The fund is managed by James Sym and was launched during 2020's Covid-19 pandemic.

Since then, the manager has demonstrated his capability by navigating the fund well in what have been very challenging economic and market conditions, Square Mile said. 

Sym is "willing to take a different view from the consensus" and invest in areas of the market that are out of favour when he thinks the opportunity has a strong payoff potential, Square Mile analysts added.

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The Comgest Growth Europe ex UK fund has also been upgraded from A to AA rated.

Since the fund entered Square Mile's Academy of Funds in 2019, the analysts' conviction in the team's capability, their approach and process has grown stronger. 

They are long-term investors with a quality growth approach, which has been applied consistently through different economic and market conditions across all the European strategies that they manage, Square Mile stated.

The analysts "have a high regard for the team".

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