Hargreaves Lansdown has removed Standard Life Global Equity Unconstrained from its Wealth 150 list of recommended funds.
Meera Patel, a senior analyst at Hargreaves Lansdown, says the fund has struggled to perform consistently since its strategy was altered to allow the manager to place more weight behind highest conviction ideas.
“The change initially reinvigorated the fund and it performed well in the early days of its restructure,” says Patel. “It has, however, since struggled to perform consistently.”
Patel also notes the change in the manager with Lance Phillips stepping down in July this year to focus on his role as head of global equities. The portfolio was taken over by Mikhail Zverev who was involved in the fund’s management with Phillips.
“However, he remains relatively inexperienced in managing a global fund and we would like to see whether he can generate more consistent returns for investors,” says Patel. (article continues below)
She adds: “We still believe the fund’s approach has the potential to reward long-term investors and would stress this is not a recommendation to sell the fund.
“However, owing to its patchy performance and the recent change in management, we feel there are better options in the sector for those wishing to invest new money.”
Patel says Hargreveas Lansdown will continue to monitor the fund closely. If Zverev demonstrates an ability to show more consistent outperformance, she adds the fund will be considered for re-inclusion in the Wealth 150.