Two ii Super 60 funds put under formal review
16th November 2021 11:55
by Jemma Jackson from interactive investor
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CFP SDL UK Buffettology and Crux European Special Situations have both been placed under review ahead of the annual review of our rated list.
Interactive investor, the UK’s second-largest DIY investment platform for private investors, today places Super 60 rated CFP SDL UK Buffettology under formal review due to concerns around resource and size of assets.
The platform has also placed TM CRUX European Special Situations under formal review on performance concerns.
interactive investor has now placed three funds under formal review over the last several days, and it comes ahead of ii’s upcoming annual review of the Super 60 rated list.
Dzmitry Lipski, Head of Funds Research, interactive investor, says: “In line with our stated methodology, CFP SDL UK Buffettology fund has been put under formal review due to concerns around resource and size of assets. The fund is an adventurous option in our UK equities asset group.
“In regard to resource we have concerns over key person risk as Keith Ashworth-Lord is the sole manager of the fund, plus in June, he took on the responsibility of another fund - Free Spirit - following the departure of Andrew Vaughan. At present, there is no clear succession plan in place, as there is no named deputy manager on CFP SDL UK Buffettology fund. As part of our formal review process, we will assess key person risk.
“The increase in size of the fund is also a concern. When the fund was initially placed on Super 60, at launch of the rated list in January 2019, its assets were at around £600 million. Today, the assets have grown to over £1.7 billion and the average market capitalisation of the companies held in the fund has also grown. In our formal review we will investigate whether the size of the fund hinders Ashworth-Lord from having meaningful exposure to small-cap and micro-cap shares, which were a prominent part of the fund when it was placed on Super 60. We will make a final decision in the upcoming annual review of the Super 60.”
Crux European Special Situations
Dzmitry Lipski adds: “Crux European Special Situations has been put under formal review due to performance concerns. This is line with our stated methodology. The fund is an adventurous option in our European equities asset group.
“Over one, three and five years the fund has underperformed the MSCI Europe ex UK Index and the Investment Association Europe ex UK sector.
“In line with our methodology, the review process will include analysis of the fund’s underperformance over the medium term. We will also consider various adventurous options available within the Europe ex UK Equity sector if we decide to replace the fund on the Super 60 list.
“We will make a final decision in the upcoming annual review of the Super 60.”
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