This follows a period of underperformance and the announcement that the fund managers Simon Acton and Alex Codrington are to resign.
According to Hargreaves, performance until July 2008 was generally good despite a relatively high level of volatility but it suffered due to financial and mining exposure. The firm says this was then compounded as the managers invested more cautiously and failed to capitalise on the recent market bounce.
Though the duo will remain in charge of the fund while a replacement is found, Hargreaves has suggested Richard Pease’s New Star European special situations fund as an alternative.
Hargreaves Lansdown head of research Mark Dampier says: “Richard Pease has an excellent track record of managing smaller, nimble funds where he can be more flexible in buying and selling shares. The launch of the New Star European special situations fund on October 1 therefore gives him an ideal platform to showcase his talents.”