New Rating

TM Hearthstone UK Residential Fund - New rating

Rating downgraded

Newton Global Income - Downgraded

New Rating

Fundsmith Equity - New rating

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CC Japan Income & Growth Trust (CCJI) - New rating

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Legg Mason IF Japan Equity - New rating

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Old Mutual North American Equity - New rating

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AXA Framlington Japan - New rating

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T Rowe Price US Smaller Companies Equity - New rating

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City Natural Resources High Yield Trust - Rating suspended

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Vanguard FTSE Developed Europe ex-UK Equity Index - New rating

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Vanguard FTSE Developed World ex-UK Equity Index - New rating

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Vanguard FTSE UK Equity Income Index - New rating

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Vanguard UK Government Bond Index - New rating

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Vanguard UK Inflation-Linked Gilt Index - New rating

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Vanguard US Equity Index - New rating

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Fidelity Index Pacific ex Japan - New rating

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Fidelity Index Japan - New rating

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Fidelity Index Emerging Markets - New rating

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Insight Strategic Bond - New rating

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Henderson Fixed Interest Monthly Income - New rating

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Fulcrum Diversified Core Absolute Return - New rating

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JPM Multi-Asset Macro - New rating

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F&C Responsible Global Equity - New rating

Rating downgraded

Aberdeen Ethical World Equity - Downgraded

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Standard Life Investments Property Income Trust - New rating

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ETFS Physical Gold GBP - New Rating

Rating upgraded

BlackRock Gold & General - Upgraded

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JPM Emerging Markets Income - New rating

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Loomis Sayles US Equity Leaders - New Rating

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Old Mutual Global Equity - New rating

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Jo Hambro CM Global Opportunities - New rating

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Fidelity Global Enhanced Income - New rating

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Ardevora Global Long Only Equity - New rating

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British Empire IT - Downgraded

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F&C Real Estate Securities - New rating

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Morgan Stanley Diversified Alpha Plus - Downgraded

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Ardevora UK Income - New rating

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Old Mutual UK Equity Income - New rating

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Newton Global Emerging Markets W - New rating

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RobecoSAM Smart Materials Fund - New rating

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Blackrock World Mining Trust - Downgraded

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Aberdeen Global Indian Equity - Downgraded

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Aberdeen Asian Income Fund - Downgraded

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Aberdeen Global Asian Smaller Companies - Downgraded

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Aberdeen Asian Smaller Companies IT - Downgraded

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Edinburgh Dragon IT - Downgraded

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Aberdeen New Dawn IT - Downgraded

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Aberdeen Asia Pacific & Japan Equity - Downgraded

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Aberdeen Asia Pacific Equity - Downgraded

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Aberdeen Global Asia Pacific Equity - Downgraded

New launch

P2P Global Investments C-share issue

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Murray International - Downgraded

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Aberdeen World Equity Income - Downgraded

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Aberdeen World Equity - Downgraded

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Artemis Global Income - Rating upgraded

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Threadneedle Dynamic Real Return - New rating

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BlackRock UK Special Situations - Rating suspended

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Templeton Emerging Markets Trust (TEM) - Downgraded

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iShares S&P SmallCap 600 UCITS ETF - New rating

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SSGA SPDR Barclays 1-5 year Gilt UCITS ETF - New rating

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Standard Life UK Smaller Companies IT - Downgraded

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Standard Life UK Smaller Companies - Downgraded

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Schroder UK 250 Mid Cap - Downgraded

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Montanaro UK Smaller Companies - Downgraded

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Artemis UK Smaller Companies - Downgraded

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Old Mutual UK Smaller Companies - Downgraded

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Franklin UK Smaller Companies - Rating upgraded

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Newton Asian Income - Downgraded

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F&C UK Property fund - New rating

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Lazard Emerging Markets - Downgraded

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Fidelity Emerging Markets - New rating

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F&C European Small Cap ex UK Fund - New rating

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Templeton Emerging Markets Investment Trust - Downgraded

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Fidelity UK Smaller Companies - New rating

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AXA Framlington UK Smaller Companies - New rating

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Tritax Big Box - New rating

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Woodford Patient Capital Trust - New rating

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Artemis Global Income - New rating

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Empiric Student Property - New rating

Rating downgraded

TM Sanditon European fund - New rating

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UK Commercial Property Trust - Rating suspended

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BlueCrest BlueTrend (BBTS) - Downgraded

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Aberdeen Asia Pacific Equity - Downgraded

Aberdeen Asset Management (Aberdeen) has been one of the dominant forces investing in Asia and Emerging Markets for some time, with two thirds of their $480 billion (as of end June 2015) assets under management in those two sectors. Aberdeen is in the process of making a number of major organisational changes. These have seen Devan Kaloo, the former head of Emerging Market equities, promoted to global Head of Equities within the group. At the same time Hugh Young, the pioneer of the investment process at Aberdeen, will pursue a broader role at the company. At present the members of the Aberdeen Asia equities team have a combined role of portfolio manager/sector analyst. Given the recent changes in the management structure we are looking to understand whether the investment process is likely to change.

Our rated Aberdeen Asian funds have underperformed the benchmark in recent years. We believe this in part reflects the funds’ relatively conservative positioning in companies with strong corporate governance practices and their heavy underweight to China, relative to the benchmark. These funds have a lot of holdings in common and have been (and still are) underweight India relative to peers, although recently to a lesser extent. The Indian equity market rallied sharply in 2014, helping returns of funds heavily exposed to Indian businesses. Moreover, Aberdeen Asia funds are balanced in style and more value-tilted than most peers, e.g. they hold equities of the troubled bank Standard Chartered and resource stocks BHP Billiton and Rio Tinto. Finally, the funds are underweight internet and technology stocks, which have performed well recently but are considered to be lacking transparency and are believed to have rather poor corporate governance practices. Whilst we hold the Aberdeen’s investment team in high regard, relative underperformance for the last few years should now provide something of a wake-up call. Considering the above, we are lowering this fund’s rating from four to two-star hold.

We have taken these funds out of our top-rated funds.

The property market is illiquid and this can, in exceptional circumstances, lead to times in which clients are unable to dispose of part or all of their holding. Property valuations are made by independent agents but are ultimately subjective and a matter of judgement.