View more on these topics

Morningstar downgrades ‘inactive’ Axa Distribution fund

Board-Room-Meeting-Room-Business-700

Morningstar has downgraded the Axa Distribution fund for its “inactive approach” to management, saying it has delivered average performance.

The £991m fund, run by Richard Marwood, has been downgraded from a bronze rating to neutral after analyst meetings.

“Despite the long experience of the fund’s manager, Richard Marwood, and his three colleagues who work with him on distribution products, the fund applies a relatively inactive approach and has delivered performance over a number of market cycles that is not significantly different from average. Our conviction in the offering has therefore reduced,” says Randal Goldsmith, senior manager research analyst at Morningstar.

Over the past year the fund has lost 1.68 per cent, compared to a 0.86 per cent gain for the Mixed Investment 20%-60% Shares sector, while the past six months have seen the fund lose 4.23 per cent compared to a 3.31 per cent loss for the sector.

However, longer term performance has been more robust, returning 54.87 per cent over 10 years compared to 45.77 per cent. 

Richard Marwood, manager of the Distribution fund at Axa IM, says: “The fund deliberately skews its bond portfolio to shorter duration bonds to lower the volatility of the non-equity portfolio. During the strong run in bonds seen in recent years, longer dated bonds have performed better than shorter dated ones and that may have affected performance relative to peers.

“We see our long-term strategy as being well suited to cautious investors and we will continue to implement our disciplined approach to asset allocation and stock selection, despite any short term headwinds.”

Axa recently launched the Lifetime Distribution fund, to be managed by Marwood, as a pension freedoms products to provide an income in retirement.

Recommended

Deadline-Clock-Alarm-700.jpg
3

ScotWids introduces guaranteed annuities grace period

Scottish Widows has introduced a three-month grace period for customers with valuable guaranteed annuity rates. When the pension freedoms came into effect in April, the firm changed its policy so people with GARs embedded in their policies would not lose them for three months after their nominated retirement date. Previously, the provider would honour the […]

UK-Currency-Money-Pounds-Notes-700x450.jpg

UK equity fund sales reach 16-year high

Investors flocked to UK equity funds in July with sales reaching their highest level for 16 years, according to the latest figures from the Investment Association. The best-selling region in July, UK equity funds saw net retail sales of £943m, almost double the level in June and the highest since March 1999 when sales reached […]

Santander-700x450.jpg

Santander reveals mortgage credit directive changes

Santander has revealed the changes it will make to comply with the European Mortgage Credit Directive. As part of the rules, which will come into effect in March, lenders have the option of switching to the European Standardised Information Sheet or a KFI+, although they have to switch to the ESIS by March 2019. Santander […]

China-Shanghai-Modern-Asia-700x450.jpg

Revealed: The China funds hit hardest by stockmarket slump

The New Capital China Equity fund has lost the most amount of money among China funds through the country’s recent stockmarket slump, according FE Trustnet. The fund, which has £222m in assets and is managed by Mansfield Mok, has lost 32.57 per cent since the peak of the Chinese markets in June to 26 August. China’s […]

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment