The number of assets in underperforming 'dog' funds has more than halved since last summer, but more than £12bn remains stuck in such offerings, according to Bestinvest's latest 'Spot the Dog' list.
The January 2013 edition of the wealth manager's performance monitor sees the number of 'dog' funds - those that have failed to beat benchmarks over three consecutive 12-month periods, and underperformed by at least 10% over the whole three-year period - fall to 64, down from 113 in its summer 2012 issue.
'Dog' assets fell from £26.6bn to £12.1bn accordingly.
There remain a number of repeat offenders, however, with Scottish Widows/SWIP again ranking as the biggest culprit.
The group's four 'dog' funds hold £3.96bn in assets, more than three times the amount of underperforming assets held at BlackRock, the next worst performer (four funds with £1.27bn in assets).
The four Scottish Widows/SWIP funds are SWIP UK Opportunities, Scottish Widows UK Select Growth and UK Growth, and Scottish Widows UK Equity Income.
BlackRock's culprits are its UK and UK Dynamic funds as well as its US Opportunities and US Dynamic vehicles.
Baillie Gifford also has over £1bn in 'dog' funds, according to the report, spread across three vehicles: Emerging Markets Growth, Emerging Markets Leading Companies and its Greater China fund.
Three F&C funds make the asset manager the fourth-worst performer, total AUM in F&C Pacific Growth, F&C Global Thematic Opportunities and F&C North American standing at £613m.
Jupiter, meanwhile, takes fifth spot with £501m in underperforming funds, the culprits being Jupiter China and, principally, Jupiter Ecology.
However, Bestinvest acknowledges the inclusion of the latter is "a little unfair" given its niche mandate and lack of suitable benchmark. The fund remains on Bestinvest's 'buy' list for clients.
Bestinvest singled out the likes of M&G, BNY Mellon/Newton, AXA IM, St James's Place and J.P. Morgan as the large groups notable for having no funds in the list.
Other notable underperformers include the Standard Life UK Opportunities and Legal & General Growth funds in the UK equity space, Close Special Situations in the UK small-cap fund universe, and some 31% of the IMA North American sector (18 funds).
Investment Week revealed last November that wealth managers are turning to passive investments for US equity exposure due to the underperformance of many active managers.
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