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Dog days for fund firms

Schroders tops the shame list in this year’s Bestinvest Spot the Dog research, with £1.173bn of assets in the doghouse.

Scottish Widows comes second with £778m, followed by Fidelity and Invesco Perpetual with £733m and £726m respectively.

The report shows that 70 out of 698 funds have qualified for the name and shame list by failing to beat their benchmark index in each of the past three years and underperforming the index by at least 10 per cent over that time.

The 70 funds in total represent £10.6bn of assets under management.

Scottish Widows saw over half its funds fail to beat their benchmark in that period. The £508m global growth fund makes its 10th consecutive appearance in the list.

Standout dogs include the £13 million Marlborough UK equity growth fund, which fell by 37 per cent in value over the past three years, making it the worst-performing fund in the UK in that time.

Some underperformers in other sectors include the £355m Melchior European opportunities fund and the £66m M&G Japan smaller companies fund, which are down by 37 and 28 per cent respectively over the three-year period.

Invesco Perpetual provides all three dogs highlighted in the North America sector, with its US aggressive, equity and smaller companies funds down markedly over three years. Fund manager Ian Brady left the company in December last year.

Bestinvest senior research analyst Stephen Marriott says: “Difficult markets have had a knock-on effect on funds with high exposure to the likes of banks but that does not excuse poor performance.”

Bestinvest reveals that Harry Nimmo’s Standard Life UK smaller companies is its top best of show fund, having outperformed by 38 per cent in the past three years.


kennel club

Funds Dogs % of dogs

Schroders £9,115m £1,173m 12.9%

Scottish Widows £8,163m £778m 9.5%

Fidelity £14,911m £733m 5.2%

Invesco Perpetual £24,511m £726m 3%

Aberdeen £3,526m £619m 17.6%

Source: Bestinvestity

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