Fixed income funds managed by Merrill Lynch Investment Managers and Goldman Sachs Asset Management have suffered a two-notch drop in their ratings - from AAA to A - by Standard & Poor's.
The news comes in spite of large mandate wins for Merrill in the past quarter.
Standard & Poor said that its lack of exposure to Japanese government bonds was behind the downrating. S&P said that Goldman Sachs Global Fixed Income fund had consistently underperformed against its benchmark - the JP Morgan Global Traded Government Bond index.
ACMGI Global Bond portfolio was the only fund to be upgraded to AAA by S&P, and both Mellon Newton UGF International Bond fund and Newton International Bond fund were upgraded one notch to AA.
This week's Pensions Buzz respondents were mostly in agreement that 10 weeks is an appropriate length of time to conduct a full DB to DC transfer.
In this week's Pensions Buzz, we want to know if you think Guy Opperman will stay in post as pensions and financial inclusion minister under the new prime minister.
The City and County of Swansea Local Government Pension Scheme (LGPS) will swap around a quarter of its assets to a low-carbon fund by the end of the month, it has announced.