Newton’s Tineke Frikkee and Standard Life’s Karen Robertson are the two big-name exclusions from the latest Principal Investment Management white list.
The £2.7bn Newton higher-income fund and the £837m Standard Life UK equity higher income fund have both been demoted to the grey list, with four new names being added to the white list which has been expanded from 12 to 14 funds.
The Newton fund is curren-tly fourth quartile in the IMA UK equity income sector over the past 12 months, having returned 14.9 per cent compared with the sector average of 24.3 per cent. The Standard fund is on the borderline of the second and third quartile, having returned 22.8 per cent.
Principal Investment Management investment manager Joe Wiggins says: “The issue with the Newton fund was that it was too defensive in its attempts to focus on dividend and defend against market conditions.
“Standard Life UK equity higher income just went into the cyclicals’ rally a little late and consequently it just missed out.”
The white list calculates the best 14 funds in the sector based on consistent total returns and risk over five years
Artemis income tops the white list followed by Invesco Perpetual income and Neptune income. JOHCM UK equity income is the highest newcomer at fifth place on the list.
The four new entrants to the list are the £1.3bn Schroder income fund managed by Ian Lance and Nick Purves, Royal London equity income, Old Mutual equity income and the JOHCM UK equity income fund managed by James Lowen and Clive Beagles, with the fund having just reached its five-year track record.
Henderson New Star, Liontrust and F&C are all bigger companies with numerous offerings within Principal’s black list of struggling funds.
Wiggins says: “The Henderson New Star funds are a disappointment. The group has three funds in the list and while performance has picked up in 2009, there are a number of better options in the sector.”