We're disappointed with the fund's performance since launch in June 2015. It's underperformed the UK stock market over this time.
Even the best fund managers go through poor periods. But when this happens we try to understand why. This helps us decide if things can be turned around.
Julie Dean, the fund's manager, uses a business cycle approach to investing. She starts by looking at what's going on in the wider economy and where we are in the business cycle. Then she invests in companies of all sizes, including higher-risk smaller companies, with the potential to outperform in the current climate.
She thinks the economy has been heading for a slowdown for a number of years.
Normally at this point in the cycle, she’d invest in established companies with stable earnings. These companies have the potential to perform well when other businesses perform more poorly.
But she hasn’t invested as much in this type of company. She doesn't think their shares look good value compared with their future growth prospects. We see this as a mistake because many of these companies have gone on to perform well and the fund has missed out.
Our analysis also shows Julie Dean's stock-picking has been weak. This means some of the companies she invests in haven't done as well as others that are a similar size or in the same sector.
She has shown an ability to generate strong returns through good stock picking in the past. But her track record took a turn for the worse when the TM Sanditon UK Fund launched.
Overall we think Julie Dean has executed her investment process poorly during her time at Sanditon. This, combined with the fund's underperformance and her poor stock selection, means we’re no longer confident the fund can outperform in future.
For our current favourites in the UK All Companies sector please see the Wealth 150+ list.
This article is not personal advice. If you are unsure of the suitability of an investment for your circumstances, please seek advice.
|Annual percentage growth|
|June 2013 -
|June 2014 -
|June 2015 -
|June 2016 -
|June 2017 -
|TM Sanditon UK||n/a*||n/a*||-5.9%||13.0%||4.5%|
Past performance is not a guide to the future. Source: Lipper IM to 30/06/2018.
n/a* - Full year past performance prior to 2015 is unavailable.