Hargreaves Lansdown has removed the SVM global opportunities fund from its wealth 150 list of recommended funds, citing its increased volatility after the start of the financial crisis.
According to Meera Patel, a senior analyst at Hargreaves Lansdown, the fund has retained the bulk of its positions in investment trusts. These traded at wide discounts to the value of the assets they held following the start of the financial crisis.
Patel does not recommend existing investors sell the fund, as she believes they could gain from a reduction in the discount.
However, the fund has heavily underperformed its Global Growth peer group over the last three years. It has lost 24.6 per cent compared with an average gain for the sector of 8 per cent.
Roughly comparable funds such as the M&G Fund of Investment Trusts and the Jupiter Fund of Investment Trusts have lost 1.1 per cent and gained 10.5 per cent respectively.