Standard’s UK equity fund on income black list

The £705m Standard Life UK equity high-income fund, managed by Karen Robertson, is one of four new entries to Principal Investment Management’s black list of underperformers.

Martin Brown’s £86m Ignis UK equity income, Stephen Message’s £46m Old Mutual equity income and Andrew Jones’s £79m Henderson global care UK income funds also joined the list.

Over £5bn of assets sit in consistently underperforming UK equity income funds, according to the latest survey from Principal.

The income study, published twice a year by Principal, judges members of the IMA UK equity income sector. Funds in the white list of recommended funds have proven their ability to deliver a rising level of income alongside long-term capital growth over five years. The black list is for consistent underperformers.

The addition of the Standard Life UK equity high-income fund marks a fall from grace for the fund, which was in the white list only 12 months ago.

Three funds have escaped the black list since it was last published in July. Tim Rees’ £173.3m Insight Investment equity high income, Carl Stick’s £468m Rathbone income and Gary West and James Inglis-Jones’ £299.4m Liontrust income funds have been promoted to the grey list.

Principal has made three changes to its white list, with Jan Luthman’s £219m CF Walker Crips equity income, Neil Woodford’s £987m St James’s Place UK high income and Michael Clark’s £430m Fidelity moneybuilder dividend funds all added.

These additions come at the expense of James Lowen and Clive Beagles’ £918m JOHCM UK equity income, Robin Geffen’s £37.5m Neptune quarterly income and John McClure’s £38.5m Unicorn UK income fund.

Hargreaves Lansdown investment analyst Richard Troue says: “A lot of UK equity income funds held BP before the oil spill, so that has had an impact on performance.”