Scottish Widows has transferred more than a billion pounds of internal money from its Oeics into similar unitlinked vehicles.
The reduction in the value of money held within poor performing retail Oeics ends Scottish Widows and the Scottish Widows Investment Partnership's (Swip's) reign as the group with the most poor funds by value of assets under management in Bestinvest's Spot the Dog list, to be released this week.
Andy Frepp, director of sales and marketing at Swip, said its subfunds contained money from Abbey Life unit-linked funds, which were seeing net outflows rather than inflows.
He said Swip thought the best way to manage the funds was not through the Oeics but directly, meaning the Oeics will not incur the costs of continually having to rebalance the portfolio to raise cash to cover the outflows.
Therefore, separate unitlinked funds have been established for these assets, and money will be managed with similar objectives alongside the Oeics, he said.
Swip has had the most dogs by value in each of the last four Spot the Dog bi-annual reports.
However, recent transfers mean Swip's assets under management in underperforming vehicles has already reduced by around £910m.
Henderson takes the lead with £1.
02bn in dogs, while Swip falls in to second place with a lesser £799m, according to the Bestinvest report.
Lipper figures comparing fund sizes on 29 April 2005 and one month later on 31 May 2005, show Scottish Widows American Growth has been reduced from £832.
6m to just £84.
8m, Japan Growth has reduced from £138m to £4.
5m and Japan Select Growth has fallen from £34.
6m to £7.
Justin Modray, head of communications at Bestinvest, said: "Had the funds not been reduced in size, Swip would have topped the dog list by some margin. After the transfers Hendersons is only in the lead by about £230m."
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October