In its second quarterly review of fund ratings, Forsyth-OBSR has reduced its rating on Robert Shelto...
In its second quarterly review of fund ratings, Forsyth-OBSR has reduced its rating on Robert Shelton's Newton Income fund from AAA to AA.
The group has also removed ratings from the SG UK Growth fund following the departure of Peter Seabrook and from the Jupiter UK Growth fund following a lengthy period of underperformance.
Of the decision to reduce the Newton fund's rating, Mike Harris, investment director of OBSR, said: 'In many ways, this was a difficult decision for the Forsyth-OBSR ratings committee. We took into account the strong team-oriented investment process at Newton, coupled with its commitment to fundamental research.
'This very large fund has come under the day-to-day control of John Wood, who is standing in for the long-term manager, Robert Shelton, during Shelton's recuperation from a serious road accident. The committee took into account that Wood was recruited by Shelton several years ago and has worked closely with him since then, making Wood the natural temporary manager of this flagship fund.
'We also felt Shelton's absence from day-to-day control, which we hope will prove to be temporary, dictated that the fund's current rating should drop a notch to AA.'
Forsyth-OBSR awarded an AA rating to Newton Higher Income, an upgrade from A. This is in recognition of the good returns delivered by the portfolio under Clive Beagles and the strength of the group's UK equity process.
AA ratings have also been awarded to the BWD UK Aggressive Growth and Lazard UK Smaller Companies funds, while A ratings have been given to Axa UK Equity Income, JO Hambro Capital Management UK Growth and First State European Smaller Companies.
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