View more on these topics

Scottish Widows tops Bestinvest Spot the Dog report

Scottish Widows Investment Partnership has topped the Bestinvest Summer ‘Spot the Dog’ report as the worst offender, with 10 funds on the list representing two-thirds of its assets under management.

Investor money held in dog funds across 10 key investment sectors jumped to £26.6bn from the £17.3bn recorded in the last report, published in February. The number of funds rose from 44 to 113 during the same period.

Scottish Widows/Swip was singled out as the worst offender in the list with just under £6bn held in dog funds. It was joined by Schroders, Fidelity, M&G and BlackRock in the top five.

Bestinvest senior investment adviser Adrian Lowcock says: “The amount investors pay to poorly performing managers has almost tripled as investors are paying £390m per year with dog fund managers taking home £1.17bn over the three years they have been underperforming.”

A Swip spokeswoman says that the firm is currently repositioning their £54bn equities business to focus on global and specialist active equities in addition to quantitative equities.

“This means that we are in the process of transitioning a number of our equities funds, including those in the survey, to the new equities strategy.”

Big funds that appeared on the list include the £812m Neptune European Opportunities run by Robert Burnett, £864m M&G Global Leaders and £1bn M&G American run by Aled Smith, £1bn Fidelity American run by Aris Vatis, £1.1bn Schroders UK Mid 250 run by Andy Brough, £450m Blackrock UK and £758m BlackRock UK Dynamic run by Mark Lyttleton.

City Asset Management research director James Calder says: “The big groups get caught out by the list as the worst offenders as they manage the most assets. SWIP tried to be all things to all people. Like most life companies, they are not good at investing money but it is addressing performance by culling under-performing funds.”

For more analysis and a full response from investment firms mentioned in the dog list go to www.moneymarketing.co.uk.

Recommended

Fund in focus: Schroder UK alpha plus

Towards the end of the bull market in the late 1990s large, blue-chip companies outperformed the rest of the market. It was a time when Vodafone grew rapidly to represent a massive 15 per cent of the index. Blue-chips were so dominant that simply buying the largest companies led to success. Understandably, tracker funds surged […]

Swip tops £26.6bn Bestinvest ‘dog’ list of funds

Scottish Widows Investment Partnership has topped the Bestinvest Summer ‘Spot the Dog’ report as the worst offender, with 10 funds on the list representing two-thirds of its assets under management. Investor money held in dog funds across 10 key investment sectors jumped to £26.6bn from the £17.3bn recorded in the last report, published in February. […]

1

Countrywide financial services arm launches cost cutting review

Countrywide is launching a cost cutting review in its financial services division after a weak mortgage market in the first half of 2012. In its Q2 investor report, published today, the firm reveals its financial services turnover remained static compared to the same period in 2011 at £15.6m. Earnings before interest, taxes, depreciation and amortisation […]

2

Brokers urge Co-op to adopt C&G’s underwriting approach

Brokers are hoping the Co-operative Bank will adopt the flexible underwriting approach that its subsidiary Cheltenham & Gloucester was well known for after Co-op sealed a deal to buy 632 Lloyds branches. This week, the Co-operative Group announced it will pay an initial £350m for Lloyds’ Project Verde branches and up to £400m based on […]

Bonds going bust? Not so fast….

In recent months bond bears have been reinvigorated, and market commentary suggesting “the end of the bond (bull) market is near” has become commonplace. We think these comments are premature. Explaining the global government bond sell-off October has seen renewed pressure on global government bonds, initially provoked by a Bloomberg article suggesting that the ECB […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com