Ignis Argonaut European Income downgraded to one star

Bestinvest has slashed its rating on the £340m Ignis Argonaut European Income fund, saying the asset manager’s house style makes another portfolio more attractive.

Olly Russ
Olly Russ

The investment advisory business has cut the rating on the fund, which is managed by Argonaut co-founder Oliver Russ, from four stars to one.

Mark Lane, research analyst at Bestinvest, says: “We feel that top-down house style at Argonaut is more suited to an unconstrained fund mandate such as the [Ignis] Argonaut European Alpha fund run by Barry Norris.”

The funds’ latest factsheets show Norris’ £298.1m portfolio has outperformed the Ignis Argonaut European Income fund over one, three and five years.

The Ignis Argonaut European Income fund lost 10.7% in the year to January 31, returned 16.6% over the three years and lost 7.3% over five. It has beat the MSCI Europe ex UK benchmark over one and three years, but underperformed over five. (article continues below)

In comparison, the Ignis Argonaut European Alpha fund lost 6.5% over one year but returned 44.8% over three and 13.4% over five. This means it outperformed the MSCI Europe ex UK over all three timeframes.

Bestinvest’s overview of the Ignis Argonaut European Income fund adds: “We also feel that the recent focus primarily on income and the macroeconomic environment has been to the detriment of total returns in this fund.”