Skandia Investment Management says investors should not focus on the short-term returns from its UK and global best ideas funds after they underperformed in the past year.
The funds have failed to beat their benchmarks over 12 months, with returns from the £268m UK best ideas fund falling by 17 per cent compared with an average 10.9 per cent fall in the Investment Management Association’s UK all companies sector.
Global best ideas has fared better, falling by 7.8 per cent compared with a 4.6 per cent fall in the IMA active managed sector.
Skandia’s best ideas funds look to generate value by asking 10 well-known managers to select their top 10 stocks. Current names in both the UK and global offerings include Richard Plackett, Mark Tyndall and Stephen Whittaker.
Skandia has since launched a UK strategic long/short best ideas fund and has a European model in the pipeline.
Chief investment officer James Millard says: “In the recent volatility, many of the underlying managers continue to take the long-term view and do not worry about trying to outperform the market over the course of a week or a month and do not get distracted by the noise of the market.
“We are in constant dialogue with the underlying fund managers and we remain very happy with them.”