The results saw Standard Life’s Global Absolute Return Strategies (GARS) drop out of the top three for the first time since 2011, falling to sixth place. The fund was also removed from the FE Approved List in September 2016.
Charles Younes, FE research manager, said: “This result is not really surprising given the poor performance recorded by the fund over the last three years. The fund is about to record two consecutive years of negative performance, which leaves the performance significantly below its target of cash + 5% over a rolling three-year period.
“The fund has also recorded outflows, as investors were offered alternatives such as JPM Global Macro Opportunities, Invesco Perpetual Global Targeted Absolute Return and Aviva Multi Strategy Target Returns.”
Meanwhile, Alexander Darwall’s Jupiter European Fund claimed the top spot for the first time ever. It led the way with advisers researching the fund 47% more than the next most researched fund which was Fundsmith Equity, followed by CF Woodford Equity Income.
Jupiter European was also awarded the maximum five FE Crown rating at the last ratings rebalance and features in the FE Approved List.
Tanvi Kandlur, FE analyst, said: “FE Alpha Manager, Alexander Darwall has built up an impressive track record in European equity investing. The reason for its popularity among advisers is likely down to the fund’s strong performance this year.
“Over a one-year period, as of 18 December, Jupiter European is the best performing fund in the IA Europe ex-UK sector. Darwall’s style of investing in high-quality companies with growth potential can weather various market environments. The strategy has demonstrated that it can consistently add alpha over the long-term through superior stock picking.”
Earlier this year, SLI’s flagship GARS did show signs of suffering as it recorded negative net flows of £5.6bn.
However, The Adviser Centre’s chief investment officer Peter Toogood claimed at the time that investors should not be surprised considering the current distorted boom phase propped up by “easy street” monetary policy.
“The likes of GARS, and others of a similar ilk, are simply not designed to prosper in these types of markets,” he said.
