Bestinvest has told investors to sell out of the BlackRock UK absolute alpha fund, after it was downgraded to a one star rating.
The £1.2 billion absolute return fund is managed by managers Mark Lyttleton (pictured) and Nick Osborne.
Bestinvest analyst Rob Harley says: “Blackrock UK absolute alpha has now struggled to achieve its performance target with any consistency over the last three years, culminating in a particularly poor 2011.
“The manager has also suffered from poor performance across his long only UK equity mandates.”
Funds with a one-star rating are judged: “Poor, funds that we expect to underperform considerably. These funds should be sold.”
Harley says investors should consider exiting the fund in favour of the Threadneedle UK absolute alpha fund, which it has awarded four stars.