Hargreaves Lansdown (HL) has cut the £145m Invesco Perpetual UK Aggressive fund from its Wealth 150 list of recommended funds, citing “deteriorating performance”.
The fund was taken over by manager Stephen Anness in June 2008 when previous manager Ed Burke retired early, following underperformance.
HL says: “Stephen Anness has maintained a cautious approach, favouring larger, more defensive, businesses such as those in the healthcare sector. (article continues below)
“Initially, the fund kept pace with the sector, delivering average returns. However, over the last six months the fund has lagged its peers, and our analysis points to Stephen Anness’ stock picking as the main reason behind the deteriorating performance.”
HL stresses the Wealth 150 cut is not a recommendation to sell the fund, but it calls for a performance improvement before considering putting the fund back on the list.