Property and small caps dent portfolio's returns

Max King believes a higher conviction approach would have produced better returns for Investec Balan...

Max King believes a higher conviction approach would have produced better returns for Investec Balanced Managed in 2007 than the broadly balanced stance used by himself and co-manager Philip Saunders. Just over a year since it launched on 28 December, the £14m fund has underperformed the Balanced Managed sector over the 12 months to 31 December, according to Morningstar. It returned 3.4% bid to bid compared to the sector average of 4.5%. King said lower exposure to smaller companies and property, where they were already feeling negative, would have helped performance while higher allo...