Bambos Hambi, who runs the Standard Life Investment's 25 Myfolio fund of fund portfolios, said that the active range was 'held back' by holding the in-house Global Absolute Return Strategies (Gars) fund after it delivered 'flat' performance over the last 12 months.
Hambi (pictured) noted that performance of the growth portion of the Myfolio fund range had been inhibited by holding SLI's Gars over the last year, compared to the Myfolio Market funds, which invest mainly in trackers.
'Gars was pretty flat over this period, and the market range has got no absolute return vehicles in, whereas the active range has got absolute return and they were held back by the holding of Gars and absolute return bonds,' he said, although he added that Gars was beneficial to the range because it reduced volatillity.
In the year to the end of April, the £20 billion Gars fund returned 1.2%. The strategy targets 5% above cash per year over rolling three-year periods, which would have been equivalent to 5.7% in the past year.
At the end of April, the Myfolio Managed III, IV and V funds all had Gars as their top holding, with the V fund investing 19.8% in the strategy.
Last week, Neil Richardson, a Gars portfolio manager, said the team 'can't guarantee' it will make its 5% return this year, after returning 0.4% in the first quarter.