Ignis Asset Management has recruited former LV= head of UK equities Graham Ashby to run its £90.6m UK equity income fund.
Ashby will replace current manager Martin Brown this week. Brown is set to leave Ignis later in the year.
Last month, the portfolio was placed on Principal Investment Management’s Black List of consistent underperformers.
The fund’s one-year performance was down by 2.5 per cent to March 8 while the UK equity income sector was up by 0.5 per cent. Over a three-month period it was up by 10.8 per cent, compared with the UK equity income sector which was up by 5.2 per cent.
Ashby, who ran the LV= equity income fund, left the firm following its decision last August to outsource management of its £8.5bn of assets and transfer the existing external funds to Threadneedle.
Bestinvest senior analyst Ben Seager-Scott says: “Graham Ashby is well regarded in the industry and this is a good sign that fund managers are keeping an eye on performance.
“Brown took over the fund in October 2008 and that is a reasonable amount of time for him to turn round performance on the fund, which he has not managed to do.”