F&C’s UK Opportunities fund has lost its A rating from Old Broad Street Research (OBSR) after a period of underperformance.
The fund, managed by Phil Doel, aims to use a diversified but aggressive bottom-up stockpicking approach to look for opportunities for capital growth in the British market.
However, over the past year the fund has struggled, falling 45.06% against an Investment Management Association (IMA) UK All Companies sector average drop of 35.71%.
Over three years, F&C’s fund also lags its competition, posting a loss of 39.85% against a sector average loss of 31.25%.
OBSR said in a statement that although the manager’s approach has been well articulated, the fund’s performance has been disappointing, especially considering the expectations for the manager’s concentrated mandate.
Because of this the ratings agency has removed the A rating, and will monitor Doel’s progress.