Square Mile ratings

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Who are Square Mile Investment Consulting & Research?

Square Mile is an independent business that is focused on providing in-depth, qualitative research on UK Funds with the clear purpose of allowing investors or financial advisers to make an informed choice on their Fund selection.

They are highly experienced and recognised in the market as providing a clear focus for the investor through the quality, independence and depth of their research.

How do Square Mile operate?

Independence is key as it allows Square Mile to undertake research free from external influence, allowing them to remain impartial and thereby retain the integrity of their work.

Through their experienced and highly qualified team of analysts Square Mile conduct significant desktop research, which they enhance with face-to-face meetings with Fund Managers and senior executives from the Fund management businesses. This enables them to really understand what a Fund and its managers are seeking to achieve. During the course of any year Square Mile would expect to conduct in excess of 1,000 such meetings with Fund Managers.

Square Mile will establish what the specific Fund’s stated objective is and then consider whether the Fund Manager can consistently deliver that objective over the long-term.

When rating Funds Square Mile constantly ask themselves whether they would be happy to invest their own money in them and look to monitor and understand developments through continued dialogue with the Fund Manager. Funds worthy of recommendation may be rated as AAA, AA or A.

How are Funds rated?

A rating from Square Mile is very difficult to achieve, as they are based on their levels of conviction in a Fund. Square Mile expects any Active Fund to add value over a corresponding Passive strategy where such an option exists. They do not have a set quota but generally speaking believe that only 10% of Active Funds offer consistent added value.

Here is how Square Mile define their ratings

Rating Description
Square Mile AAA Assigned to Funds in which Square Mile have the greatest confidence that they will meet their stated objectives over an investment cycle.

Square Mile AA Assigned to Funds in which Square Mile have a high confidence that they will meet their stated objectives over an investment cycle.

Square Mile A Assigned to Funds in which Square Mile have confidence that they will meet their stated objectives over an investment cycle.

Square Mile Recommended Some Funds meet the highest standards in their fields, however, beyond this the Funds cannot be readily differentiated between each other. An example would be Passive Funds. Such products will be assigned a recommended rating.

Square Mile Recommended Funds which Square Mile researchers have identified as up and coming interesting propositions. However, their manager, their strategy or their process is new and it has not been thoroughly tested in all market environments. As a result Square Mile are not in a position to provide a full Fund rating. Instead Square Mile are producing a qualified rating to highlight the Fund's potential but also recognise Square Mile's reservations.

Square Mile Recommended Assigned to rated Funds to which there has been a material change to the Fund's process, structure or management team. This is a temporary rating until the Square Mile team have had a chance to fully review the Fund and decide whether to reinstate or change the former rating (AAA, AA, A or Recommended) or to remove the rating altogether.

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