Square Mile Investment Consulting and Research has added a further 14 passive products to its Academy of Funds, awarding them each 'Recommended' status.
The new additions, which include a number of products from BlackRock, Vanguard and Royal London, bring the total number of passive funds in the academy to 61.
Its assessment identifies funds following a low-cost approach to approximate the average market return, which can be held for the long term.
Funds achieving a "R" rating are typically run by investment companies that demonstrate a firm commitment to running passive strategies.
They track an index suitable for retail investors, such as regional equity and gilt markets, and are low cost, managed efficiently and of sufficient size to allow an accurate implementation of their strategy.
The new funds are:
|New rated sectors||Increased managed assets||Enhanced performance track record|
|BlackRock Mid Cap UK Equity Tracker||Fidelity Index Pacific ex Japan||Fidelity Index Europe ex UK|
|HSBC FTSE 250 Index||State Street Global Advisors Asia Pacific ex Japan Tracker||Fidelity Index Japan|
|BlackRock Corporate Bond Tracker||Royal London Asia Pacific ex Japan Tracker|
|L&G Sterling Corporate Bond Index||Royal London Japan Tracker|
|L&G Short Dated Sterling Corporate Bond Index||State Street Global Advisors North America Equity Tracker|
|Vanguard UK Investment Grade Bond Index|
|Vanguard UK Short-Term Investment Grade Bond Index|
Victoria Hasler (pictured), head of research at Square Mile, said, "Following the introduction of open-ended passive funds into the academy of funds in August 2015, we have now extended our range to include what we believe to be the best in both FTSE 250 and UK corporate bond index trackers, the latter of which we have awarded ratings on both full and reduced duration funds.
"We recognise that passive investments, now 23% of AUM in the UK, often have a key role to play in portfolio construction. We seek to recognise funds in which the firm's management has a clear commitment to running open-ended passive investments, the fund has built up a strong performance track record, the benchmarks being tracked are suitable and the funds provide investors value for money."
Square Mile has also awarded "Recommended" status to funds which have either enhanced their performance track record or increased their managed assets to a certain level since the last review.
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