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Axa Framlington's Equity Income and Monthly Income funds, managed by George Luckraft, have both been downgraded to AA ratings, from AAA.

Richard Romer-Lee, research director at OBSR, said Mr Luckraft's strategy of investing in higher-growth small caps and yield focus had suffered recently.

He said Mr Luckraft had underestimated the scale of financial and economic problems, which caused the funds to underperform.

Mr Romer-Lee said the ratings were more appropriate for the fund, "taking into account the extent and duration of the underperformance, together with OBSR’s revised level of conviction".

Similarly, the Old Mutual Select Mid Cap fund was also downgraded to AA, reflecting the recent management change, despite OBSR's strong conviction in the new manager’s abilities.

Richard Watts took over management of the fund from Ashton Bradbury, who became Old Mutual’s head of equities, earlier this year.