Repeat offender Swip leads Bestinvest “dog” funds list

Bestinvest has revealed that more than £9.2bn was held in underperforming dog funds, although this has dropped from August 2011, when the figure was £23.2bn.

According to Bestinvest’s biannual “Spot the dog” report, 108 funds underperformed the benchmark by 10 per cent or more over three years to December 31, 2011.

The “worst offender” was Scottish Widows Investment Partnership which had both the greatest number of funds and the most in value.

Four Scottish Widows funds made the report, down from six in the previous list, totalling £2.3 billion. It was labelled a “repeat offender” by Bestinvest and included the Scottish Widows global select growth, SWIP UK income, Scottish Widows UK growth and Scottish Widows UK equity income funds.

M&G was revealed as the second “worst offender” with the fund group as the M&G dividend fund entered the dog list.

Schroders was placed third, with the Schroder UK mid 250 fund managed by Andy Brough making the list.

Standard Life was fourth-placed, rising up the table from eleventh, with the Standard Life UK high equity income fund labelled as the culprit.

St James’s Place was pushed up to fifth from 10th place as a result of the St James’s Place international fund.

The report further revealed that £133m had been paid in annual management charges over the past 12 months, accumulating to almost £400m over the three-year period examined.

The IMA UK all companies sector had the most dog funds, with 15 funds.