We have reduced our rating on the THS International Growth & Value fund from 4 to 3 stars. The change follows some changes in the fund management team and recent mediocre performance. The performance is partly explained by currency issues - the fund was overweight to sterling and the euro during the recent dollar surge. However, the team changes are more of a concern - John Hodson has gone part time, whilst Simon Edelsten has stepped down completely and is taking a break from the industry. This follows the departure of the late Nils Taube in 2006. There is still a wealth of experience amongst the five remaining team members - Cato Stonex co-founded Taube Hodson Stonex Partners in 1997 whilst Mark Evans joined in 1998. However, we have reduced the star rating as a precautionary measure.
We have also downgraded the Electrical & General investment trust, which is run by THS Partners in a similar fashion.