Old Broad Street Reseach has removed the Schroder UK mid 250 fund from its ratings service.
The fund, which is managed by Andy Brough, was rated AA but the combined research team of OBSR and Morningstar UK says it failed to deliver to its performance objective for an extended period of time.
In a joint statement, the analysts say the persistence of underperformance in recent years through a variety of market conditions has undermined their conviction to the extent that the fund no longer merits its AA rating.
The fund continues to hold its Standard Rating on the Morningstar rating scale. This indicates, in the opinion of the joint analyst team, that the fund is not a standout, but neither is it deeply flawed.
The analysts do not have a high degree of conviction that the fund can outperform.
The fund rose by 17.9 per cent over three years, while the FTSE 250 (ex IT) index gained 45.7 per cent, according to FE Trustnet.