Bestinvest has told investors to sell out of the BlackRock UK Absolute Alpha fund, after it was downgraded to a one-star rating.
Robert Harley, analyst at Bestinvest, says: “Blackrock UK Absolute Alpha has now struggled to achieve its performance target with any consistency over the last three years, culminating in a particularly poor 2011.
“The manager has also suffered from poor performance across his long only UK equity mandates.”
Funds with a one-star rating are judged: “Poor, funds that we expect to underperform considerably. These funds should be sold.”
The £1.2 billion Absolute Return fund is managed by managers Mark Lyttleton and Nick Osborne, it holds a Morningstar OBSR “bronze” rating.
Harley says investors should consider exiting the fund in favour of the Threadneedle UK Absolute Alpha fund, which it has awarded four stars.