We are delighted to announce the addition of the following passive funds to the Square Mile Academy of Funds, each with a 'Recommended' rating.

Fidelity Index Emerging Markets
UBS S&P 500 Index
Vanguard Global Bond Index
Vanguard Global Short Term Bond Index

Each of these funds have successfully tracked their respective benchmark indices over time, have appropriate fee levels and are run by management companies who we believe have clearly demonstrated their commitment to the UK retail market.

In response to the broad improvement in the ability of passive strategies to track their indices, we have also increased the standards required for passive funds to achieve and maintain a Square Mile 'Recommended' rating within our Academy of Funds. As a result of this process, we have taken the action to remove the 'Recommended' rating from the following five funds.

Aviva Investors UK Index Tracking
Legal & General Global Emerging Markets Index
Royal London Europe ex UK Tracker
SSgA North America Equity Tracker
Royal London US Tracker

These removals are in recognition of the funds struggling to closely track their benchmark indices when compared to other 'Recommended' passive strategies. Broadly speaking, this is due to the higher fees levied on the investor.

Overall, we are impressed with the general trend in passive management towards lower costs and tighter tracking difference, and believe that this can only benefit the end investor.