From time to time most funds endure a period of underperformance, but below Chelsea has identified the ten funds which have consistently lagged their peers by the widest margin over the last three years.

Names in its first ‘DropZone’ of 2013 include UBS’ £12m UK Smaller Companies fund, run by Frank Manduca. as well as Invesco Perpetual’s £31m Japanese Smaller Companies fund, headed by Osamu Tokuno.

Both funds are way behind the returns achieved by their sectors, lagging the average return by 44.13% and 26.82% respectively.

Juliet Schooling Latter, head of research at Chelsea, said: “It is extremely worrying that funds can underperform their peers to this extent.

“The only consolation this time is that investors in these funds don’t seem to need a referendum as to whether to stay in or get out. They are voting with their feet and assets under management in the 10 worst funds in the DropZone account for just £376.6m.”