Advisers have criticised fund houses for jumping on the bandwagon and launching 'fad' funds at the peak of markets when they have little or no experience in running funds in the sector.
Of the 122 funds launched since June 30 2007, just 14pc have provided investors with a positive return (Lipper figures over one year). The launches include property funds as well as funds aiming to capitalise on growth in the Asia Pacific region. The worst performing fund, launched in December last year, is the Neptune Asia Pacific Opportunities fund, with a negative return of 27.2pc (as at July 27, 2008). Another poor performer in the Asian region has been the Schroder Asian Alpha Plus fund, which made a negative return of 17.5pc (as at July 28, 2008). It is notable that both companies ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes