New Rating

TM Hearthstone UK Residential Fund - New rating

Rating downgraded

Newton Global Income - Downgraded

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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

Suspended

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

Rating downgraded

British Empire IT - Downgraded

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F&C Real Estate Securities - New rating

Rating downgraded

Morgan Stanley Diversified Alpha Plus - Downgraded

New Rating

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

Rating downgraded

Blackrock World Mining Trust - Downgraded

Rating downgraded

Aberdeen Global Indian Equity - Downgraded

Rating downgraded

Aberdeen Asian Income Fund - Downgraded

Rating downgraded

Aberdeen Global Asian Smaller Companies - Downgraded

Rating downgraded

Aberdeen Asian Smaller Companies IT - Downgraded

Rating downgraded

Edinburgh Dragon IT - Downgraded

Rating downgraded

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

Rating downgraded

Murray International - Downgraded

Rating downgraded

Aberdeen World Equity Income - Downgraded

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Aberdeen World Equity - Downgraded

Rating upgraded

Artemis Global Income - Rating upgraded

New Rating

Threadneedle Dynamic Real Return - New rating

Suspended

BlackRock UK Special Situations - Rating suspended

Rating downgraded

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

Rating downgraded

Artemis UK Smaller Companies - Downgraded

Rating downgraded

Old Mutual UK Smaller Companies - Downgraded

Rating upgraded

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

Rating downgraded

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

Rating downgraded

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

Suspended

UK Commercial Property Trust - Rating suspended

Rating downgraded

BlueCrest BlueTrend (BBTS) - Downgraded

Rating downgraded

Murray International - Downgraded

Aberdeen's Global Equities Team took over the management of the trust in 2004. The team is experienced and feeds off Aberdeen’s regional teams. Like other Aberdeen funds, it has a bias to quality companies. Aberdeen Asset Management is in a process of making a number of organisational changes which saw Devan Kaloo, a former head of emerging markets’ equities, promoted to global head of equities within the group, whilst Hugh Young, the pioneer of the investment process at Aberdeen, will pursue a broader role within the group. At present, the members of the Aberdeen Global 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 process is likely to be affected.

The performance of the fund has suffered since 2010 partially due to cautious positioning and a large underweight to the US, whilst allocating more capital to Asia and emerging markets, and specifically LatAm. The portfolio remains cautiously positioned whilst the team maintains its constructive view on Asia and emerging markets, although we are yet to see whether the fund can navigate its way in the current market environment. The trust’s performance has become more aligned with the Aberdeen World Equity Income fund more recently despite the trust being 15.2% geared. It is trading at circa 3% premium – below its one-year rolling average of circa 7%. For these reasons, we are downgrading this fund from a four-star rating to two stars.

Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets.