George Luckraft and Martin Walker are two of the leading fund managers to fall into Chelsea Financial Services’ latest relegation zone.
Chelsea says Luckraft’s £215m Axa Framlington equity income fund’s re-entry is partially down to the underperformance of his industrials and healthcare stocks. His fund is currently fourth quartile in the IMA UK equity income sector over three years, having fallen 34.5 per cent.
Luckraft is joined by the £951m Invesco Perpetual UK growth, managed by Martin Walker. Walker took on the fund in 2008 following the exit of Ed Burke. The vehicle is also fourth quartile over three years in the UK all-companies sector.
Chelsea decides which funds are eligible for the list through a quantitative screening process, with funds that are third or fourth quartile each year for three consecutive years eligible.
Chelsea managing director Darius McDermott says: “Luckraft’s long-term track record is good but we are shocked he has fallen back into the relegation zone so quickly.”
Luckraft says: “Having seen a recovery since the start of 2009, recent poor performance has again been mainly driven by a significant underperformance by small cap shares in general. Investors have shunned this area as it is very dependent on the UK economy. While this is the case for many companies, there are plenty of exceptions. The fund has around 50 per cent in small caps and has been impacted by this general background.”