Performance on this fund has been volatile and the managers have failed to add value over a number of years - the fund has ranked 4th quartile over 1 year and 3rd quartile over 3 years. Since launching the increasingly focussed portfolio a year ago (now only 25 stocks make up the portfolio - previously 40) the managers have got some sectoral bets wrong which have cost the fund dearly.
With such a focussed portfolio, and the maintenance of large bets at sector level, this fund will either be a ‘hero or a zero’. We feel that given the volatility and uncertainty of the market at this present time, coupled with the managers’ inconsistent track record, this fund presents too high a level of risk for the majority of our investors.
The fund has been downgraded to 2 stars.