Franklin Templeton Global Emerging Markets and Neptune Japan Opportunities are among the 10 worst-offenders in Chelsea’s research, which lists funds that have underperformed their sector averages by the largest amount over a cumulative three-year period to 1 August.
Topping the list as the worst performer is Manek Growth Fund, run by Jayesh Manek, which has underperformed the UK All Companies sector average by 68% during the period. It has lost investors more than 34%, compared with a sector average positive return of 33%.
This is followed by UBS Smaller Companies and Allianz Global Eco Trends, which have underperformed their respective sector averages by 49% and 41% respectively. Others in the top 10 include Barmac The Castleton Growth, Standard Life UK Opportunities, SVM Global Opportunities and JPM Cautious Total Return.
“The most disturbing finding in our latest review is that not only has the number of dud funds in our wider RedZone almost doubled to 130, but the amount of underperforming assets has more than doubled too,” said Darius McDermott, managing director at Chelsea.
“An eye-watering £32.86bn of investors’ money has been consistently languishing in the 3rd and 4th quartile for the last three years. Now I know we’ve all become a little complacent with big numbers following trillions of pounds, euros and dollars worth of quantitative easing, but we really need to sit up and take notice of these numbers.”
Scottish Widows has the most underperforming funds overall in the RedZone, while the Global sector has been the most disappointing in terms of overall numbers with 28 funds in the list. The full report can be found at www.chelseafs.co.uk/redzone.
