The fund looks to outperform the market by asking 10 managers to invest in 10 of their best stock picks but Lipper figures to June 5 show it will only scrape past the average fall in the Investment Management Association active managed sector of 8.2 per cent since its 2006 launch. The past 12 months have seen fourth-quartile returns, with the fund down by 26.4 per cent compared with the average fall of 21.1 per cent. Half of the fund is UK-weighted.
Hargreaves Lansdown head of research Mark Dampier says: “It has been disappointing but I would say there is nothing wrong with it that would affect my investment principles. One or two managers have not worked that well for the fund and it was launched at the top of the market and has been clobbered for that.”
Skandia Investment Management fund manager Ryan Hughes says: “We have had a strong start and despite a challenging 2008 we have seen an upturn in performance recently over three and six-month timeframes.”