Investing
Funds to drop? Ten serial underperformers revealed
Chelsea Financial Services has highlighted ten funds which have consistently underperformed peers over the last three years, suggesting investors in these funds should rethink their allocations.
All funds and fund managers go through tough patches as managers’ investment styles go out of favour, but some of the portfolios in Chelsea’s rogues gallery have consistently failed to deliver.
Darius McDermott, the firm’s managing director, said investors in the funds highlighted may want to consider switching to better performing alternatives.
He said: “Sometimes there may be good reasons for the underperformance and investors may decide to be patient with the manager. However. in some cases, ditching a perennial underperformer is the only thing to do.”
The ten funds in the DropZone and the amount they have lagged their respective indices are listed below.
Amongst the worst performers is Manek Growth – run by Jayesh Manek – which regularly features in such lists, as well as the Neptune Global Special Situations fund, run by CEO of the group Robin Geffen.
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Fund |
% underperformance from sector average |
|---|---|
| Manek Growth | -82.96 |
| IM Hexam Global Emerging Markets | -32.98 |
| Ignis UK Focus | -32.96 |
| CF Lacomp World | -32.90 |
| Neptune Global Sepcial Situations | -30.79 |
| F&C High Income | -28.75 |
| Marlborough UK Income & Growth | -27.31 |
| Cavendish North American | -22.45 |
| Neptune Global Equity | -22.34 |
| Cavendish AIM | -21.98 |
Based on three-year cumulative performance to end April
Source: FE