Square Mile adds Fundsmith Equity and Investec UK Alpha to its Academy of Funds

Square Mile Investment Consulting & Research (Square Mile) has added Fundsmith Equity and Investec UK Alpha to its Academy of Funds, awarding them an AA and an A rating, respectively.

Housed within a dedicated section on the Square Mile website and free for all advisers to access, recommended funds 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.

Commenting on the Fundsmith Equity fund, Square Mile's Senior Investment Research Analyst John Monaghan said: "This fund has many qualities. It has a clearly defined philosophy and process, and in our opinion seeks to deliver an achievable objective. In setting up the business, Mr Smith has attempted to build a wholly transparent investment proposition. There will be periods when the types of stock the fund invests in will be out of favour, but over the long term we would expect the approach to add value. Both Mr Smith and Mr Robins have extensive experience working in financial markets and although the fund is just shy of its five year track record, Mr Smith used an identical investment approach from 2003 to 2010 during his time as investment adviser for the Tullett Liberty pension fund."

"In our view, this fund should be considered with a long term investment horizon but could be held as a standalone strategy or as core holding within a diversified portfolio."

Commenting on the addition of Investec UK Alpha to the Academy of Funds, Square Mile's Investment Research Analyst Andrew Johnston said: "This is not a fund that necessarily aims to shoot the lights out on a performance level, but instead looks to outperform regardless of the market backdrop. This means that, unlike more aggressive strategies within the UK All Companies sector whose more stringent investment styles may cyclically fall in or out of favour, the manager is aiming instead to produce regular and attractive levels of outperformance."

"Given the clarity of the investment philosophy, process, commitment and drive of the fund manager and team, and support of wider resources within Investec, we believe this is an attractive proposition for investors seeking an opportunistic strategy; but one which should offer a reliable return profile. Even though Mr Brazier et al have only been with Investec for a relatively short period of time, he has adhered to the same investment philosophy since the start of his career, and, with his team, has consistently applied a well-constructed investment process for many years."