Bestinvest reveals "dog" funds
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Bestinvest has revealed that more than £9.2 billion was held in dog funds, although this has dropped from August 2011, when the figure was £23.2 billion.
For the full list of Bestinvest’s dog funds, click here.
According to Bestinvest’s “Spot the dog” report, 108 funds underperformed the benchmark by 10% or more over three years.
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 bilion. 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 High 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. (article continues below)
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.
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Readers' comments (2)
Mike Spencer-Phillips | 21 Feb 2012 2:26 pm
stats, stats and damn lies ! It would be interesting to see what constitutes "Best Invests" funds under management categories, as St. James's Place has £28 Billion FUM, across all funds.£475 mill as a percentage of this is 1.7 % if my maths is correct, the equivalent of one holding within a fund ! As they say stats can be used to prove anything...it just depends on why your trying to prove it ! I rest my case.
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Bugsy | 21 Feb 2012 4:31 pm
Unfortunately the new Spot the Dog isn't yet on the Bestinvest website at the time of writing, so the methodology cannot be checked. Assuming it's the same as before, the Dogs represent the underperformers over discrete years for 3 consecutive years ON ONE PARTICULAR DATE. If you change the date you can get different results, so try comparing with the Red Zone / Relegation Zone of Chelseafs, or use the Hargreaves Lansdown or Citywire charts. For example, in the August issue there was a great palaver about 2 huge Fidelity Funds, now missing, and Newton International, now missing. The Newton Fund seemed to be doing pretty well to me when I compared a different date on Citywire and HL. Trustnet made it 1st quartile over 1 year and 2nd quartile over 3 years in IMA Global Funds in September! Newton International has since changed it's name.
This is randomness rather than science, so I am unclear why there are such headlines against a background of so little close examination.
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