More than 10% of all unit trusts and Oeics underperformed their respective benchmarks by in excess o...
More than 10% of all unit trusts and Oeics underperformed their respective benchmarks by in excess of 10% over the past three years, according to Bestinvest's latest 'Spot the Dog' guide.
The large percentage of underperformance was repeated on a discrete basis, with similar numbers underperforming their benchmarks each 12-month period over the past three years.
Highlighting the UK underperformers, John Spiers, managing director of Bestinvest, said: 'We expect specialist funds to feature in Spot the Dog because their distinctive styles are bound to be out of fashion at certain times. It is more worrying to see large, mainstream funds appearing.'
Those featured in the guide of worst performing funds included Aberdeen UK Growth, Abbey National UK Growth, Aegon UK Equity, Gartmore UK Growth and Friends Provident UK Equity.
Lowlights from other sectors include the appearance among the 'European Dogs' of Invesco Perpertual European Growth, which shows a three-year return of -56% on a bid-to-bid basis.
The guide also points to the 'horrific figures' of UK Smaller Company funds from the likes of Edinburgh, Exeter and Smith & Williamson, which each posted more than 70% bid-to-bid losses over three years.
Bestinvest points out that inclusion in any of its lists does not automatically mean a fund should be sold, suggesting it is possible a group has already taken action to improve performance.
Spiers said poor performers from pervious issues, including M&G, Scottish Widows and Aberdeen, have taken major steps to change their investment process. 'In the case of the first two of these groups, the benefits are now clearly evident,' he added.
Despite improved risk appetite
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