View more on these topics

Hargreaves cuts Jupiter’s Tony Nutt from Wealth 150

Hargreaves Lansdown has cut Tony Nutt’s £2.45bn Jupiter income and £559m Jupiter high income funds from its list of recommended funds despite signs of a performance turnaround.

The firm says Nutt’s stock seletion has been “inconsistent” since the financial crisis struck in 2008 and has cut it from the Wealth 150 list.

The move is a blow for the manager who was among the UK’s most popular until he was unable to keep up with peers when markets rebounded after the financial crisis.

High exposure to oil major BP exacerbated the performance woes this year following the disaster in the Gulf of Mexico.

His flagship Jupiter income trust ranks 97th out of 103 funds in the IMA UK equity income fund sector after delivering just 7.2 per cent over the past year.

But over the past three months the fund ranks 39th out of 104 funds with performance records over the period, after delivering 8.2 per cent of growth.

Hargreaves Lansdown senior analyst Meera Patel says: “Our analysis suggests that the primary cause of the underperformance is that Tony Nutt’s stock selection within some areas of the market has been inconsistent, especially in the media sector.

“Even the best fund managers go through disappointing periods, and we do not feel this short-term underperformance means that Tony Nutt is a poor manager. His longer-term track record is excellent, and we firmly believe he possesses the skills to improve returns.

“However, we would like to see a sustained improvement, driven by positive stock selection, before suggesting clients invest any more money in either fund. We would stress that this is not a recommendation to sell the funds.”

Recommended

Lovett joins Ignis as equity investment chief

Ignis Asset Management has recruited Mark Lovett, formerly of Allianz RCM, as chief investment officer for equities. Lovett joined on October 4 and will be responsible for overseeing a £10bn fund range. He was chief investment officer for UK and European equities in London at Allianz RCM. He will report to chief investment officer Chris […]

1

Stephen Lansdown sells £58m worth of shares in Hargreaves Lansdown

Hargreaves Lansdown co-founder Stephen Lansdown has made over £58m after selling a 2.86 per cent stake in the firm. Lansdown, who co-founded the firm with Peter Hargreaves in 1981, sold 13,560,843 ordinary shares at 429p. The transaction leaves Lansdown with 95.5m ordinary shares, which represents 20.1 per cent of the shares in issue. Lansdown stepped […]

Peter Graham replaces Bernie Hickman as L&G protection boss

Peter Graham (pictured) has taken over from Bernie Hickman as managing director of Legal & General’s individual protection business with effect from today. Hickman is moving into the role of finance and capital management director in L&G’s annuities business, as tipped in Money Marketing in May. Hickman started at L&G as a protection actuary in […]

PROFILE.jpg

Eddie Grant

The new PFS president is intent on raising the image of financial services so it is an attractive career for young people and he believes that advisers will continue to raise the bar in terms of standards and qualifications Interview by Natalie Holt

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment