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Can dog funds be taught new tricks?

Money Marketing asks the managers of dog funds to justify their underperformance and explain to investment advisers what they are doing to turn them roundThe number of “dog funds” has almost doubled in the last 18 months, according to Bestinvest.

There are now 72 funds in the kennel compared with 38 in January 2006, according to the adviser’s latest Spot the Dog guide. Of these, 27 are UK equity funds.

Bestinvest brands funds as dogs when they have underperformed their benchmarks in each of the last three years and also underperformed their benchmarks by at least 10 per cent cumulatively over that period.

Head of communications Justin Modray says some fund managers are serial offenders. Canada Life has been fingered as one of the worst culprits, having multiple funds on the list and the highest percentage of its funds in the doghouse at 57.9 per cent.

New Star is another investment house that has seen repeat appearances on the list.

The research shows that only 34 per cent of UK all companies funds have outperformed their benchmarks over rolling three-year periods over the last 20 years. The UK all companies sector has the second lowest level of consistent outperformance after the US sector, where only 32 per cent of funds have managed the feat.

Modray says: “We tend to find that more managers underperform during periods of volatile markets but it is clear that too many are simply not very good at their job.”


Insurer cuts life rates for veggies

Animal Friends Insurance has announced it will offer a 6 per cent discount on its life insurance premiums to vegetarians and fish-eaters.Over 3.5 million Briton’s are vegetarian or intend to become vegetarian in the next year according to the not-for-profit insurer.Animal Friends Insurance is calling on other providers to follow its lead, given that medical […]

NU wins fight over yeoman photo in ad

Norwich Union Direct has won its battle royale with the charity Historic Royal Palaces over the use of a yeoman warder in its advertising.Historic Royal Palaces, which looks after the Tower of London and Hampton Court, complained to the Advertising Standards Authority after NU Direct used a picture of an actor dressed as a yeoman […]

Stanlib on road to Africa

Stanlib, the asset management arm of Standard Bank of South Africa is launching two African equity funds for the high-net-worth end of the retail market.

Myners leads personal accounts campaign

Paul Myners is to head the Personal Accounts Delivery Authority which is responsible for getting the Government’s personal accounts scheme up and running.Myners conducted the Treasury review of institutional investment, the forerunner to the controversial Sandler review of long-term savings. Myners also ran independent Government reviews of mut-ual insurance companies and equity investment in science-based […]


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