Luckraft’s monthly income and equity income funds have recorded fourth-quartile returns, having lost 32.3 per cent and 31.6 per cent respectively in the past 12 months.
Bestinvest research analyst John Davey says that despite having a strong long-term track record, concerns surrounding the funds warranted a lowering in its ratings to a hold.
He says: “Luckraft has held a number of small and mid-sized companies that are often illiquid and he has failed to change around his portfolio to counteract this.
“He has some large cap exposure but most are underweight positions with no value. Luckraft has also been involved with home improvement businesses which as a sector has been declining so no one can really expect any of those holdings to do well.
“He also continues to hold a number of consumer-rel-ated and property stocks which also do not have great prospects at present.”
Axa Framlington was unavailable for comment.