The ratings agency says the fund should remain a core holding for many investors and that given the circumstances Shah is the right appointment.
But it says Shah must show what he can do with such a significant asset base before they buy in totally to the fund.
The agency has some doubts including the size of the fund and the fact that Shah’s performance on his previous large fund the European Aggressive fund was “middling”. It is also concerned that he has a smaller range of funds on the UK fund than on this European fund.
The note says: “We would expect the fund to do well in a variety of markets, but it could lag when a narrow group of pricey sectors leads the way.”
“|The fund is an appropriate core UK equity holding for investors who can tolerate periods of underperformance. For those who are concerned by the possibility of loss or lagging a benchmark over a period of time, this may not be a suitable offering.”