Bestinvest has downgraded the £147m Aberforth UK Small Companies unit trust after raising concerns about its ability to add value relative to peer group funds for more than five years.
The fund has been downgraded to a one-star sell rating.
Bestinvest analyst Robert Harley says the open-ended fund has “struggled” to add value compared with peers.
He says: “We believe there are smaller, more nimble funds available that are in a better position to exploit market opportunities in the small cap arena.
“However, we have only downgraded their investment trust from 4 to 3 stars in recognition of the discount to net asset value still available to investors.”
The company declined to comment when contacted.