Fixed Income  

Hargreaves drops Stopford’s fund from Wealth 150

Hargreaves Lansdown has removed John Stopford’s £200m Investec Strategic Bond fund from its list of recommended funds.

The discount broker said it had removed the fund from its Wealth 150 because its performance since the financial crisis had been “lacklustre”.

Richard Troue, investment analyst at Hargreaves Lansdown, said: “Despite moving into corporate, high yield and emerging market bonds as the recovery took hold, the manager failed to capitalise fully as these areas of the bond market went on to perform well.

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“While it was the correct decision to move into these areas the manager’s bond selection let him down, according to our analysis.”

The fund has lost investors 2 per cent in the past year, compared to an average 4.6 per cent gain for funds in the IMA Sterling Strategic Bond sector, according to data from Lipper.

In the past five years the fund has also underperformed, generating a 31.2 per cent return compared with the 41.4 per cent sector average return.

Mr Troue instead recommended the M&G Optimal Income fund, the Jupiter Strategic Bond fund and the Invesco Perpetual Tactical Bond fund for investors looking for flexible bond exposure.

Investec Asset Management was unavailable for comment.