Manek Growth is top dog fund

Manek Growth is the worst-performing fund over the past three years and should be dropped like 'a hot stone' from investment portfolios, according to Chelsea Financial Services’ latest dog fund review.

In its latest RedZone survey, which names and shames the worst-performing funds, the discount broker revealed that Manek Growth managed to lose its investors more than 34 per cent over the three years to 1 August 2012, compared with the average positive return of 33 per cent in its sector. Overall, it underperformed its sector by a whopping 68 per cent. 

It is followed by UBS Smaller Companies and Allianz Global Eco Trends, which have underperformed their respective sector averages by 49 per cent and 41 per cent respectively.

However, across the board Scottish Widows-managed funds come out worse, representing the highest number of poorly-performing funds in the review. 

Darius McDermott, managing director of Chelsea, says: 'Our analysis, frankly, makes for pretty depressing reading and I can only urge anyone invested in these funds to consider whether they want to remain invested or switch as quickly as possible to a better fund.'

The top 10 funds to drop:

Position Fund % underperformance from sector average
1 Manek Growth 68.11
2 UBS UK Smaller Companies 49.81
3 Allianz Global Eco Trends 41.35
4 Barmac The Castleton Growth 39.75
5 Neptune Japan Opportunities 37.05
6 Standard Life Investments UK Opportunities 31.31
7 SVM Global Opportunities 30.1
8 JPM Cautious Total Return 25.07
9 Templeton Global Emerging Markets 24.57
10 Fulcrum Global Diversified 23.32

Note: These are the top 10 funds that have underperformed their sector averages by the largest amount over the cumulative three-year period to 1 August 2012

This article was written for our sister website Moneywise

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