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Managed by George Luckraft, the fund has lagged the IMA Other Bond sector over six months, one year, three years and five years to date.

Since September 2007, the Axa fund has lost 7.6 per cent against the IMA sector average loss of 4.3 per cent.

Keith Iles, director of Middlesex-based advisory firm The JHC Partnership, said he was on the verge of switching his customers' money out in favour of cash.

He said: "I am obviously concerned with its performance, and I have been having discussions with unitholders this week. It is time to switch out and go into cash rather than into another fund, as we have been very bearish for the past 12 months."

Despite his impending move, Mr Iles said Axa needed to address the issue for remaining unitholders.

"They have to fix it," he said.

Over the past 12 months, Axa Framlington Managed Income has shrunk in size, bleeding £25.4m in net outflows.

Hargreaves Lansdown voted with its feet some time ago, shifting clients' money out and into the £812.4m Artemis High Income fund run by Adrian Frost and Adrian Gosden, a competitor in the UK Other Bond sector.

Adrian Shandley, managing director of Lancashire-based Premier Wealth Management, said while he was a user of Axa IM's products in general, the performance of the Managed Income fund was a cause for concern.