Bestinvest has downgraded he Skandia Global Best Ideas fund to a one-star, sell rating after noting its high fees and how it had trailed the benchmark.
Research analyst Tom White says: “At launch we generally liked the freshness of the concept, and the fact that most of the underlying managers were rated by us on other funds.
“However, we expressed concerns that the managers didn’t communicate, which could lead to risks in portfolio construction.”
He adds: “We also noted the high charges and felt performance would have to be good to justify them. This has not been the case – the fund has trailed the benchmark and performance has also been volatile.”
The fund was launched in 2006 and initially saw the portfolio delegated to 10 external managers who choose 10 stocks each, each of who are chosen by Lee Freeman-Shor.
Current managers on the fund include BlackRock’s Richard Plackett, Old Mutual’s Dan Nickols, Artemis fund manager Tim Steer, Richard Buxton and Nathan Gibbs of Schroders, Tom Marsico of Marsico Capital, hedge fund manager Crispin Odey, First State’s Jonathan Asante and Mark Fleming of Tiburon Partners.