Rathbones' Stick drops into Principal Black List

Principal Investment Management's latest income study has suggested investors should switch out of Carl Stick's £481m Rathbone Income fund and Nick Kirrage and Kevin Murphy's £1.3bn Schroder Income fund as performance deteriorates.

The July 2011 Principal White List, released today, said the market's eagerness to reward certainty over potential does not bode well for Kirrage and Murphy's style of focusing on deeply out of favour companies. "Kirrage and Murphy have found the first year of their tenure difficult following the departure of their predecessors, Nick Purves and Ian Lance, to pastures new," Principal said. "They should be rewarded for their patience over time, but there are better opportunities out there for investors". The Schroder Income fund remains on the Grey List, which can act as an early war...