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Hargreaves Lansdown drop UBS small-cap fund from Wealth 150

Hargreaves Lansdown has removed the UBS smaller companies fund from its Wealth 150 following a period of poor performance.

The fund, which is managed by Frank Manduca, is down 16.1 per cent in the past 12 months compared to an 8.1 per cent fall in the UK smaller companies.

Hargreaves Lansdown senior analyst Meera Patel says the fund’s objective allows it to invest in medium sized companies, which proved more resilient during the economic downturn compared to its smaller counterparts.

She says: “Frank Manduca did not make use of this flexibility preferring to keep the portfolio focused on the small end of the universe, and this has hindered overall performance compared to its peers. Our research shows his stock selection has also been poor.

“Frank Manduca has recently repositioned the portfolio towards the more economically sensitive areas of the market like the financials and retailers and the initial signs are encouraging. In our opinion therefore, existing investors should continue to hold. We will however closely monitor the manager’s progress and let investors know if our view changes.”

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A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
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