The £200m fund has been managed by Peter Saacke since 2004 and is bottom of the IMA global growth sector over 12 months, having lost 19.5 per cent compared with an average return of 4.4 per cent.
Global growth uses SmartGARP which processes information from 2,000 analysts globally on a daily basis. Each stock is scored and ranked to give a snapshot of a firm’s financial outlook.
Bestinvest analyst Tom White says: “The recent underperformance has been exacerbated by some poor decisions by the manager. Although the process is primarily quantitative, it does include room for discretion. Smart GARP dates back to the 1990s and has had periods of underperformance before bouncing back and with the talented managers continuing to refine the process, it may well do the same, particularly if markets stabilise. However, in view of the continued uncertainty, there remains the possibility of market turning points again hitting performance.”
Artemis product and communications director Nick Wells says: “The fund has been defensive and we remain well positioned for the future.”