HSBC's talismanic UK fund manager Tim Russell has regained the Standard & Poor's AAA rating on ...
HSBC's talismanic UK fund manager Tim Russell has regained the Standard & Poor's AAA rating on his UK Income & Growth fund which he lost in last year's annual review of funds.
The other new entries into the top bracket of funds rated by S&P are ABN Amro's UK Select Opportunities fund managed by Nigel Thomas and the offshore HSBC GIF UK Equity Fund.
The total number of AAA-rated funds remains at six, however, with the Deutsche Blue Chip fund, the Henderson Horizon UK Smaller Companies and Henderson UK Smaller Companies funds falling from AAA to AA.
The ABN Amro UK Growth fund managed by Nigel Thomas, retained its AAA rating, as did the Newton Income fund, managed by Robert Shelton. The continued top rating on Shelton's fund means that it has been AAA or equivalent rated by standard and poor's for a record eleventh year running, the entire length of S&P's ratings existence.
The only AAA rated fund in the UK Smaller Companies sector, the Schroder UK Smaller Companies fund, also retained its top rating. A further 25 mainstream UK Growth funds and 12 UK Smaller Companies funds were rated AA.
The review, which covered 103 UK funds, was the largest ever undertaken by S&P.
There was a great disparity of performance by funds in the UK All Companies sector, with the margin between top and bottom quartiles standing at 17% in the 12-month period to 1 August. That compared with 24% in the preceding 12 months. On a five-year cumulative performance view the difference between the two quartiles was 42%.
Commenting on the review James Tew, Standard & Poor's European Director of Research said: "Recent performance in the UK Growth sector has been disappointing as many managers have found it hard to keep pace with rapidly changing market conditions. However as our report identifies there are fund managers taking a pragmatic approach in sector and stock selection that have achieved consistent outperformance in the widely different investment scenarios existing over recent years. No doubt careful selection of an active manager and the management approach can achieve significantly better than median returns."
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