Nutt's £2.5 billion income fund placed on ‘black list’

31 January 2011 12:37 pm | By Adam Lewis

Anthony Nutt’s £2.5bn Jupiter income fund has been placed in the black list of constant underperformers in Principal Investment Management’s latest income study.

In July 2010, 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, 2011, the fund is ranked 70 out of 86 funds in the IMA equity income sector, having posted a return of 4.1 per cent compared with the sector average of 11.8 per cent.

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.

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.

If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing