Allianz RCM UK Growth fund comes under fire

  • Print
  • Comment
Categories:Investments

Meera Patel

Meera Patel

Patel says there are an “array of outstanding managers in the IMA UK All Companies sector to choose from”.

Senior analyst Patel says the £49.4m fund had come under scrutiny “for its consistently poor performance” following a recent review of the sector.

She says: “Our analysis suggests the fund’s sector allocation decisions, as well as stock selection, have been the main drivers of poor performance.

“The large exposure to the financial sector (currently 22.5%) in particular has not been helpful.

“Exposure to the consumer goods sector has also been negative for returns as a slowing UK economy and higher unemployment have put a brake on consumer spending, and this has weighed heavily.”

She adds: “In terms of stock selection, holding banks such as Barclays within the financial sector has not been a shrewd move, as these have struggled owing to escalating concerns over the euro zone crisis.

“Meanwhile, holdings in Hays, the recruitment firm, and Keller Group, the engineering specialist have suffered as the earnings outlook for both companies has dteriorated this year.”

Patel says the AXA Framlington UK Select Opportunities fund was a “superior alternative” and lauded manager Nigel Thomas’s experience and stock picking ability.

 

To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.

  • Print
  • Comment

Daily Email Updates

If you enjoyed this article, sign up to receive the latest breaking news and analysis for your industry from Fund Web.

The Money Marketing CPD Centre

Time spent reading about technical or regulatory issues can build your annual CPD hours. Log and plan your annual CPD for free with The Money Marketing CPD Centre.



Have your say Edit my profile/screen name

You must sign in to make a comment


Fund Data



Poll

Does the UK recovery feel stronger now pay rises are above inflation?