Research house Morningstar has downgraded strategies managed by Aberdeen Asset Management and Putnam Investments following its review of the fixed interest sector.
The Aberdeen Diversified Fixed Income Fund, with $178.1 million in net assets, was downgraded to investment grade from recommended.
"Although we still view this as an adequate option, there are too many uncertainties surrounding Aberdeen's acquisition of parts of Credit Suisse's global asset management business in early 2009 for us to have complete conviction in rating this any higher," Morningstar said.
The Putnam Worldwide Income Fund, with $51.16 million in net assets, was downgraded from highly recommended to investment grade.
"Our loss of conviction was due to team cutbacks, and most importantly recognition that the strategy is far more aggressive than we had been led to believe by Putnam in the past," Morningstar said.
"The strategy recovered much of its losses in 2009, so while investors following this recommendation would have had a bumpy ride, their overall return would be pretty much flat."
Five strategies also received an upgrade in Morningstar's review.
The BlackRock Monthly Income Fund, which lost 36.12 per cent in 2008 before rebounding 33.12 per cent in 2009, had its rating upgraded to investment grade from hold.
Funds including Dimensional Five Year Diversified Fixed Interest, Macquarie Income Opportunities, PM Capital Enhanced Yield and UBS Diversified Fixed Income were all upgraded to recommended from investment grade on the basis of Morningstar's improved conviction.
Morningstar's review included 38 fixed interest strategies.
