According to the latest “dog fund” report from Tilney Bestinvest, investors have more than £18bn stagnating in 54 underperforming funds, up from 37 last year. To qualify for the “Spot the Dog” report, a fund has to have underperformed its benchmark in three consecutive years, and have done so by a cumulative total of at least 10% (and the list only covers unit trusts/Oeics, not investment trusts).
We’ve listed the worst offenders in each of the eight sectors covered by the report in the table on the right. If you have money sitting in one of these funds, it’s worth at least taking another look at your original reasons for buying the fund, and then considering whether it’s time to trade it in for a tracker.
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| Fund | Sector | 3-yr return on £100 | 3-yr underperformance versus benchmark |
|---|---|---|---|
| Scottish Widows UK Select Growth | UK | £97 | -22% |
| SF Webb Capital Smaller Companies Growth | UK Smaller Companies | £77 | -48% |
| Aberdeen European Smaller Companies | Europe | £118 | -23% |
| Templeton Global Emerging Markets | Global Emerging Markets | £68 | -25% |
| Aberdeen Asia Pacific | Asia Pacific | £92 | -14% |
| Legg Mason IF Royce US Smaller Companies | North America | £122 | -21% |
| Schroder Japan Alpha Plus | Japan | £120 | -21% |
| Aberdeen World Equity | Global | £93 | -33% |