Rating downgraded

Specialist First State Funds - Downgraded

New launch

Neptune launches China Max Alpha fund

New launch

Neptune Global Long/Short Sector fund

New launch

Legg Mason US Equity Income

New launch

Acuim UK Multi Cap Income Fund

New launch

JO Hambro CM Asia ex Japan

New launch

JO Hambro CM Asia ex Japan Small and Mid Cap

Rating upgraded

Legg Mason Global Credit Absolute Return - Upgraded

New launch

GAM Star Emerging Asia Equity

New launch

MFM Slater Income

Rating downgraded

Fidelity European Opportunities - Downgraded

Rating downgraded

Rensburg UK Blue Chip Growth - Downgraded

New Rating

City Natural Resources High Yield IT - New Rating

New Rating

HSBC American Index - New Rating

Suspended

Legal and General High Income Trust - Rating suspended

New Rating

Muzinich Short Duration High Yield and Enhanced Yield Funds

Rating downgraded

AXA Short Duration High Yield - Downgraded

Rating downgraded

Schroder US Mid Cap - Downgraded

Suspended

Royal London Japan Growth - Rating Suspended

New Rating

First State Indian Subcontinent - New Rating

Rating downgraded

BlackRock European Dynamic - Upgraded

Rating downgraded

BlackRock UK Dynamic - Downgraded

New Rating

Schroder Global Property Income Maximiser - New Rating

Rating downgraded

Artemis European Growth

Rating downgraded

Invesco Perpetual European Equity - Downgraded

Rating downgraded

GAM UK Diversified - Downgraded

Rating downgraded

Investec European - Downgraded

Rating downgraded

Rensburg UK Select Growth - Downgraded

Rating downgraded

Fidelity European - Downgraded

Rating downgraded

Ignis European Income - Downgraded

Rating downgraded

BlackRock UK Dynamic Downgraded

Rating downgraded

Newton Asian Income awarded 4 stars

Rating downgraded

Henderson Asian Dividend Income Downgraded to 3 stars

New Rating

Invesco Perpetual European Equity - Downgraded

Rating downgraded

iShares S&P 500 Downgraded to 3 Star Rating

Rating downgraded

Land Securities - Downgraded

New Rating

Templeton Frontier Markets - New Rating

Rating downgraded

Jupiter Financial Opportunities - Downgraded

Rating upgraded

Fidelity South East Asia - Upgraded

New Rating

IFSL Barclays Defined Returns Autocall Fund - New Rating

New Rating

M&G UK Inflation Linked Corporate Bond - New Rating

Rating downgraded

Henderson Asian Dividend Income Downgraded to 3 stars

This fund is part of the small but growing area of Asian funds that aim to provide income return in addition to the capital returns that many believe are the be all and end all of Asian investing. In fact, dividend provision in the region has grown in prominence over the last decade.

In 2010, 26% of stocks yielding more than 3% in FTSE World index were in the Asia Pacific region excluding Japan, more than any other region.

Relative to his peer group, the manager Mike Kerley has been more aggressively positioned, with overweight exposure to China and underweight exposure Australia. The manager is also holding Chinese banks, which is something of a rarity at the moment, and in my opinion is a key differentiator for this fund.

Unfortunately, over the last couple of years the manager has been caught out by some wrong calls, most recently taking a view in early 2010 that inflation in the region would remain benign with monetary policy staying soft as a result.

Having taken significant positions in interest-rate sensitive stocks, the fund suffered with the subsequent inflation shock and the aggressive measures taken by authorities to bring inflation under control. The manager still believes that Chinese banks will recover, and is maintaining these positions.

View the manager of the month section

Confidence in the manager has been somewhat eroded and his current positioning does not sit comfortably with our house view. As a result, this fund is downgraded to 3 stars. This has now been replaced as our favoured Asian equity income fund by Newton Asian Income.

View the Premier Selection funds