M&G assets in ‘dog’ funds almost double since January

Aberdeen Asset Management and M&G once again lead the pack in wealth manager Tilney Bestinvest’s latest 'Spot the Dog' list of serially underperforming UK funds, although M&G has increased its lead in this dubious league. The bi-annual Spot the Dog report highlights Oeics and unit trusts that have underperformed their benchmarks for three consecutive years, and by more than 10%, over a three-year period. Total M&G assets under management in ‘dog’ funds have almost doubled from £6 billion to £11.9 billion since January's report, as its £5.5 billion Global Dividend fund became the latest product to be included. In total, five M&G funds feature, including the firm’s Recovery, Global Basics, North American Dividend and Global Leaders, all repeat offenders. In total, M&G holds 60% of total ‘dog’ assets, unchanged from the January report, while the overall level of £18 billion in dog funds is also the same. In January 54 funds featured – this time, the total has fallen to 30. However, this is due to a change in methodology to only analyse the lower-cost, commission-free version of funds. This change means Halifax and Scottish Widows funds, previously run by Aberdeen, no longer appear. Aberdeen, which had 11 funds featured in the last report, have seen their ‘dog’ funds fall to six (the most of any firm), while its assets in ‘dogs’ have fallen from £3 billion to £2.1 billion. The firm remains a faraway second. Funds included were Asia Pacific Equity, North American Equity, European Smaller Companies Equity, Ethical World Equity, World Equity and World Equity Income plus the St James's Place Far East fund, in which it is underlying manager. A new entrant to the list was Invesco Perpetual, which makes a reappearance after three years due to its £764 million Global Equity Income fund. Other firms, also contributing a single ‘dog’ to the ranking, included Columbia Threadneedle, Jupiter, NFU Mutual, Old Mutual, Sarasin and GAM. In sector terms, Global and North America were the worst performers with 16 and six ‘dogs’ respectively. Europe, Japan and Global Emerging Markets all had one ‘dog’, while UK Equities and Asia Pacific ex-Japan offered two funds each. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.



Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.