Those on the group’s white list are funds that over five years have proven their ability to produce “superior total returns, without taking excess risk.” While the grey list is a limbo area for managers with an out-of-favour style or an early warning signal for investors to look elsewhere, the black list represents consistent underperformers.
Sanlam Private Investments (SPI), formerly Principal, said Newton Higher Income has been included on the grey list as Richard Wilmot takes over the portfolio with the intention to make changes to its investment process to a more flexible remit.
While acknowledging Wilmot’s skill as a growth manager, Paul Surguy, head of managed funds at SPI, said the remit change is likely to lead to a drop in income. “This disappoints us, with many investors having purchased the fund for a higher level of income, they should now look elsewhere.”
Ahead of his retirement next year, Anthony Nutt has handed management of Jupiter Income to Ben Whitmore. “Having been a member of the white list for many years, performance has suffered more recently and he ends his tenure in the black list. Having also followed Ben’s career, we would hope that he turns the fund around, but would prefer to gauge his performance from the sidelines for the moment.”
SPI noted SWIP UK Income appears rooted to the bottom of its black list, appearing there again in this latest issue. Among the others on the black list are: Axa Framlington Equity Income and Monthly Income funds; Blackrock UK Income, Neptune Income and Standard Life UK Equity Income.
High on SPI’s white list are funds: JOHCM UK Equity Income, RBS Equity Income, Royal London UK Equity Income and Cazenove UK Equity Income. As a perennial member of the white list, SPI gave Artemis Income its longest service accolade.
