The Schroder Global Sustainable Value Equity fund has retained its Responsible A rating from Square Mile, despite other Schroders funds with same manager losing their ratings.
Changes within Schroders’ Global Value team, including the departure of its head, Nick Kirrage, and the promotion of Simon Adler to Head of Value Equities has seen the Schroder Income, Schroder Income Maximiser, Schroder Recovery funds lose A ratings. This the firm said, reflected “the level of conviction in Mr Kirrage” of Square Mile analysts, whose departure, in their view, “represents a material change in the leadership of these strategies”. It also follows the exit of other members of the team.
However, the analysts have retained the Responsible A rating held by the Schroder Global Sustainable Value Equity fund, managed by Simon Adler. Although he will have additional demands on his time as he assumes his new role, the analysts do not think this will have a “material impact on the fund, given his additional support from Liam Nunn and Roberta Barr”.
In the same announcement, Square Mile said that the CLA Better World Global Equity fund retains Responsible Positive Prospect rating.
A recent Stock Exchange announcement confirming that CCLA is set to be acquired by Jupiter Investment Management, subject to regulatory approval, has not led the analysts to expect the acquisition will have “a discernible impact on the management of the fund”. Additionally, CCLA is expected to preserve its established name and distinct identity following the acquisition. It is also projected that CCLA will benefit from Jupiter’s reputation and scale within the UK and internationally, leveraging its operational infrastructure and distribution footprint.
The analysts are scheduled to have a review meeting with the CCLA team in September, which they say will serve “as an opportunity to conduct a comprehensive assessment of the implications stemming from this acquisition”. They will then formally reassess the rating, although in the interim the fund’s rating is retained.
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