The manager has a solid track record although performance in 2009 has been weaker than we would have expected given the strength in small caps where the portfolio was positioned.
The attraction of this product is that McGlashan can rotate the portfolio into growth stocks when there is a momentum phase and thus can avoid severe underperformance in 1999 and 2005-type markets where many value managers struggled. The low asset base allows the portfolio to be shifted relatively easily.
We have reduced our rating to 4 stars.