Sanlam Private Investment has placed a ‘sell’ rating on Adrian Frost and Adrian Gosden’s £6.4bn Artemis Income fund, while downgrading portfolios managed by Invesco Perpetual’s Neil Woodford and Mark Barnett.
SPI head of managed funds Paul Surguy says the rating has been put on the Artermis fund with a “heavy heart”. It returned 90.36 per cent over five years to 31 December, compared with the IMA UK Equity Income sector’s 95.14 per cent average gain.
Surguy says: “We have long been supporters of Adrians Frost and Gosden and they have regularly featured in client portfolios.
“However, our job on the Income Study is to remain unemotional and allow the process to speak for itself. Due to unexceptional returns over the last five years, the fund is falling down the Grey List and investors should therefore consider alternatives.”
Chelsea managing director Darius McDermott rates Artemis Income as a ‘buy’.
He says: “The performance has been a little disappointing over the last five years but the Adrians follow a consistent process and their longer term numbers are good. We continue to monitor this fund but we are happy with it at the moment.”
SPI has also downgraded Woodford’s £1.3bn St James’s Place UK High Income fund from the Grey List to the Black List, which is home to the 14 weakest funds over five years in the IMA UK Equity Income sector.
Meanwhile, Barnett’s £367.9m Invesco Perpetual UK Strategic Income fund has fallen off the White List onto the Grey.
The changes were made as part of the latest SPI Income Study, which places funds on the White, Grey or Black lists dependent on their performance over the past five years.