Aberdeen Asset Management has topped Tilney Bestinvest’s ‘Spot the Dog’ list of underperforming fund managers for the second time this year.
Aberdeen now has eight funds in the wealth firm’s bi-annual study with a combined value of £3.3 billion, a drop on the nine funds it had on the list in January, but it was still the fund group with the highest number of funds on the list.
The report lists funds which have failed to beat their benchmark over three consecutive years. The funds must also have underperformed the benchmark by at least 10% over that three year period.
Tilney Bestinvest said Aberdeen had been one of the dominant forces in Asia and the emerging markets for some time, however had lost some steam which reflected the funds’ relatively conservative positioning in companies with strong corporate governance practices and their heavy underweight in China relative to the benchmark.
M&G topped the list in terms of asset value with two funds representing £7.3 billion of investors’ money.
BNY Mellon-owned Newton’s Global Income fund was second in terms of assets with £4.5 billion.
St James’s Place also jumped up the asset list from sixth to fourth place, with three funds worth £640 million.
Overall the number of funds included fell from 60 in January to 37 this time.
Jason Hollands (pictured), managing director at Tilney Bestinvest, said that although the number of funds had decreased there was still a large gap between the best and worst funds for investors.
‘Despite some positive overall trends, the gulf between the best and worst performers is still huge,’ he said.
‘Amongst funds in the UK all companies sector, £100 invested in the worst fund delivered a £9.20 return over three years while the best performer generated a £116.90 return – so it is still vital to be selective. Investment funds are not “all the same”.’