Anthony Nutt’s Jupiter Income fund has been placed in the Black List of constant underperformers in Principal Investment Management’s latest income study.
In July, Principal placed Nutt’s fund in its Grey List of funds who show out-of-favour styles or show early stages of decline.
However, it says as the fund continues to struggle against its peers it has slipped into the Black List. As a result, it recommends investors switch out of the £2.5 billion portfolio.
According to Morningstar, over three years to January 24, the fund is ranked 70th out of 86 funds in the IMA Equity Income sector, having posted a return of 4.1% compared with the sector average of 11.8%.
According to Principal, the Black List aims not to highlight those funds experiencing fleeting difficulties, but to alert investors to those which have consistently provided sub-par returns. (article continues below)
A statement says: “We were disappointed to issue a switch recommendation on Jupiter Income in our mid-year review as we hold its manager, Anthony Nutt, in high regard. However, the fund has now slipped into the Black List and continues to struggle against its peers.”
The Gartmore UK Equity Income and Fidelity Income Plus funds have also been added to the Black List, while the Cazenove UK Equity Income and Rathbone Blue Chip Income & Growth funds are new entrants on the White List.
Funds listed in the White List are those that have, over five years, proved their ability to deliver a rising level of income, alongside long-term capital growth.