Russell expects better fortunes as market slows

Cazenove's Tim Russell puts UK Growth & Income's recent underperformance down to lack of mining stocks and going defensive too early

Tim Russell believes performance on his £726m Cazenove UK Growth & Income fund will improve as we move into a slower economic environment. The vehicle has underperformed the UK All Companies sector average over the past one and three years, which Russell puts down to an underweight position in mining and applying a defensive tilt to the portfolio too early. Over three years to 26 November, the fund has returned 40.3% bid to bid against the sector average of 44%, ranking 163 out of 256, according to Morningstar. Russell said the cautious stance on the fund will benefit returns moving f...