Principal urges investors to ditch Geffen's £1bn Neptune Income

Principal Investment Management's latest income study urges investors to switch out of Robin Geffen's £1bn Neptune Income fund, warning its global growth emphasis is likely to disappoint this year.

The February 2012 Principal White List said funds with more of an income than a growth focus will benefit in the subdued growth environment, with the trend for companies to generate significant dividend flows continuing to play out. Geffen’s fund has slipped onto the Grey List, defined as a temporary home for a manager with an out-of-favour style or an early warning signal for a fund in decline, Principal said. The next stage for such a fund is often the Black List, which is home to consistent underperformers. “Neptune Income has been a long-term stalwart of the White List [of winning...