M&G has repositioned its Strategic Growth UK equity fund to give it a less aggressive mandate, write...
M&G has repositioned its Strategic Growth UK equity fund to give it a less aggressive mandate, writes David Griffiths.
Head of global analysis at the company, John Hatherly, said that the new stance had been adopted following the fund's 'disappointing' performance.
The aim of the change, he said, was to limit the vulnerability of the fund in adverse market conditions, rather than changing its strategy.
He added: 'It will still have a growth bias. We have refined the process of stock selection so that it is more resilient in these kinds of circumstances.'
While acknowledging that the fund's performance had been poor, Hatherly pointed out that following a change in manager 18 months ago, market sentiment had moved away from growth towards value.
He said: 'The fund is much more balanced than it was. There is a much smaller weighting in TMT, while being well up to weighting in oils and banks. We were also unfortunate in that we made changes to the fund at a time which coincided with a change in investor sentiment.'
Strategic Growth is currently ranked 265 in its sector out of 301, over the three month period to 8 August 2001, it returned -8.9% on a bid to bid basis. This is versus a sector average of -5.8%. Over one year, it is ranked 246, returning -21.9% to investors on an offer to bid basis. Over three years, it is ranked 232 in its sector, returning -15.6% on an offer to bid basis.
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