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|
|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