Scottish Widows and Schroders are firmly in the doghouse, according to Bestinvest's biannual ‘spot the dog' research.
The report outlines the worst performing (dog) funds in the investment universe; those underperforming the benchmark in each of the last three years and down on the benchmark by 10% over the same period.
Scottish Widows was named among those ‘gone to the dogs’, with over half the group’s funds failing to beat the benchmark in the period.
Schroders topped the ‘assets in dog funds’ list with £1,173m – followed by Scottish Widows on £778m and Fidelity with £733m.
According to its own independent in-house research team, Bestinvest identified 70 dog funds with a total £14.7bn under control.
Top Dogs (underperforming benchmark):
- UK – £13 Marlborough UK Equity Growth, down 37%
- European – £355 Melchior European Opportunities, down 37%
- International – £60 UBS Global Optimal, down 14%
- North America – £9 Invesco Perpetual US Aggressive, down 27%
- Tech – £37 Jupiter Global Technology, down 11%
- Japan – £66 M&G Japan Smaller Companies, down 28%
- EM – £59 Lloyd George Emerging Markets, down 19%
- Asia Pac – £232 Invesco Perpetual Hong Kong & China, down 25%
“Since the summer of 2007 the ‘credit crunch’ has brought some difficult market conditions with a knock-on effect on funds with high exposure to banking, real estate, retail or small cap,” Bestinvest senior research analyst Stephen Marriott says.
“However, it doesn’t excuse poor fund performance across the board and six months of underperformance is not enough alone to qualify for the kennel.
“It is all too easy to blame market conditions. The simple fact is that too many fund managers just don’t cut the mustard.”
However, for the first time Bestinvest revealed the ‘best in show’, the top performing funds using the reverse of the dog criteria.
Standard Life UK Smaller Companies R topped the list returning 38% over the three year period, followed by the Artemis Global Growth fund with 34%, and First State Greater China Growth on 23%.
Bestinvest business manager Hugo Shaw adds: “The managers of these funds have battled adverse market conditions in recent months to post impressive returns and we believe all of these funds continue to merit consideration for a place in a diversified portfolio for a long-term investor.”
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