Royal London Property fund has received a red rating for performance issues in the firm’s recent Assessment of Value report.
The fund's A and B share classes, feeder fund and property trust have all "significantly underperformed" the benchmark index over the past seven years, with the long-term record still behind target.
Recent changes have made an impact to performance according to the report, as a new manager, increased team and structural portfolio changes all take effect. However, it still qualifies for the firm's red value rating.
Regarding further action, the board said: "We will continue to closely monitor that the recent performance improvement becomes sustained and evident over the longer-term measurement cycle."
Also achieving a red performance rating was GMAP Dynamic, joined by the majority of the GMAP range in raising value concerns, although Adventurous, Balanced, Defensive and Growth managed to stay within the amber rating.
The report explained these funds had underperformed against their composite benchmarks over the full six years since inception, although again noted there was a "clear improvement trend" as a result of recent action.
Again, the board will continue to monitor performance.
The Short Term Fixed Income and Short Term Fixed Income Enhanced funds have also both been given an amber rating for performance issues.
However, the design of these funds leaves them particularly vulnerable to interest rate changes and as yields have risen and bond prices fall, this duo is expected to endure negative performance.
As such, no changes will be made to the investment process: "[The board is] satisfied that the recent performance is because of market conditions, rather than poor investment process or decision-making."
Short Term Fixed Income will, however, switch investors in the M share class to a different share class with a lower fee, to address its amber cost rating.