Allianz RCM Bric Stars off Wealth 150
Hargreaves Lansdown has removed the £868.6m Allianz RCM Bric Stars fund from its Wealth 150 list of favourite funds.
Meera Patel, a senior analyst at the firm, says the fund has experienced a “mixed” past few years, after initially recovering strongly from the financial crisis and outperforming the wider emerging markets sector.
“However the fund lagged in 2010 as emerging market performance was led by the smaller emerging nations such as Thailand, Peru and Chile, where the fund has little exposure,” she continues.
Patel adds that a deterioration in stock selection, especially in India and China, is one of the main reasons for the product’s underperformance and says the fund was taken from the Wealth 150 until it starts to improve.
Michael Konstantinov, the fund’s manager, targeted larger stocks in Brazil, Russia, India and China in the expectation that they would perform well this but these companies have “disappointed”, Patel says.
But the analyst also points out the fund’s longer-term performance is “reasonable”, adding investors should continue to hold it if it meets their objectives and saying Konstantinov “has the skills to improve returns”.
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