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Aberdeen and M&G rack up more 'dog' funds

Aberdeen Asset Management's emerging market woes spread to other regions, with group now housing 11 'dog' funds, says Tilney Bestinvest.

 
Aberdeen and M&G rack up more 'dog' funds

Aberdeen Asset Management and M&G have racked up more 'dog' funds in online stock broker Tilney Bestinvest's Spot the Dog study of underperforming funds.

Aberdeen now has 11 funds branded as 'dogs' in the latest update of the semi-annual study. 'Dog' funds are those which have underperformed their benchmark over the last three years, and underperformed by more than 10% over three years. The group also serves as the manager of a further seven funds for other groups that have also been branded 'dogs'.

That is up from eight funds in the last edition of the study, as the group's problems in Asia, where it had missed out on some of the rally in Indian stocks, have spread to other funds it manages in other areas. New entrants include a number of its UK funds, such as UK Mid-Cap Equity Responsible UK Equity and UK Smaller Companies Equity .

Tilney Bestinvest said Aberdeen's woes illustrated the potential pitfalls of a 'house' style, where a fund management company runs funds with a common approach. 'The Asia and emerging markets funds have lost their lustre and the common process means the malaise has spread across the group,' it said.

'A strong house process can be an advantage, but too much commonality can take away the individual flair with which fund managers add value.'

M&G has remained at the top of the list, as it manages the most assets in 'dog' funds, at £6.4 billion. Further losses have reduced the size of its biggest, Tom Dobell's Recovery fund, to £3.7 billion from £4.5 billion at the time of the last report, while the Global Basics fund now stands at £1.8 billion, down from £2.2 billion.

M&G has made another bid to turn around the performance of the fund, a long-time laggard, by handing it to Jamie Horvat, after previous manager Randeep Somel struggled to revitalise the fund following its troubles under Graham French.

The Prudential-owned fund group has also seen a further two funds admitted to the doghouse, its North American Dividend and Global Recovery fund.

Schroders has shot up the table to third, due largely to the entry of one of its largely institutional funds, the £2.4 billion QEP Global Active Value . Aberdeen's woes have meanwhile spread to the former investment arm of insurer Scottish Widows, which the fund group bought in 2013. Three of the group's funds have made it onto the list.

One fund to have escaped the doghouse is the £4.5 billion Newton Global Income fund, handed to Nick Clay after previous manager James Harries announced he was leaving to join Troy Asset Management. Newton's owner BNY Mellon has dropped from second on the list to ninth, with two smaller funds branded 'dogs': Emerging Income and Oriental

Group 'Dog' funds Value
M&G Recovery , North American Dividend , Global Basics , Global Recovery £6.4bn
Aberdeen UK Mid-Cap Equity , Responsible UK Equity , UK Equity UK Smaller Companies Equity , European Smaller Companies Equity , European Equity , Asia Pacific Equity , North American Equity , World Equity Income , Ethical World Equity , World Equity £3bn
Schroders Japan Alpha Plus , QEP Global Active Value £2.5bn
St. James's Place High Octane , Global Equity £1.1bn
Scottish Widows UK Select Growth , European Select Growth , Global Growth £989m
Fidelity American , Japan £970m
Majedie UK Smaller Companies £450m
Jupiter North American Income £383m
BNY Mellon Newton Emerging Income , Oriental £355m
Lazard Global Equity Income £283m

6 comments so far. Why not have your say?

alan franklin

Jan 30, 2016 at 09:25

I am not surprised at the pathetic performance of Aberdeen. These firms get too big, too systems driven and disconnected from real investors.

I am currenly having major problems with another Scottish outfit, Alliance Trust, which has been bungling our account since they took over from Stocktrade, which I had used for share dealing for many years without problems.

Even though Stocktrade supposedly sent them all our trading details we not only had to go through all the hoops again but yesterday they wouldn't even let me deal in our own shares! Even though we had already done a trade on the same account (an oversight, they said.) So I sent them all our details a third time and warned them to get their act together.

All of these firms have automated answering services designed to drive you crazy and which seem to be programmed to keep you waiting and serve you badly while you listen to recorded messages telling you how they value your business - clearly untrue..

Does any reader know of a small, human-friendly firm which allows you quick dealer access, is easy to contact and fairly priced?

report this

Patrick Napier

Jan 30, 2016 at 10:33

Yes, Hargreaves Lansdown. This company has grown in size but still offers the best individual services to its clients.

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kevin clayton

Jan 30, 2016 at 11:23

I like Tilney Bestinvest who does this 'dog funds' list.

Why ? because you can book a time on line and they will call you then.

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alan franklin

Jan 30, 2016 at 14:31

Thanks for the advice, which I will take.

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dd

Jan 31, 2016 at 22:15

H-L and Tilney Bestinvest are both human but take a look at the charges. It seems to me that H-L cap the charge for holding ITs but Bestinvest does not have a cap as far as I am aware. Correct me if I am wrong!

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Pensioner

Feb 01, 2016 at 08:28

Avoid Dog Funds. They are elephants (to quote the late Jim Slater). "Elephants don't gallop". Avoid Bank Shares, commodities and oil. Choose funds with small but winning holdings (about 28 or so). Be nimble hold 6 funds or Inv. Trusts. I stopped buying individual shares after 2007/8 and never looked back.

Use HL easy site to navigate and do research.

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  • M&G Recovery A Inc
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  • M&G North American Dividend A Inc
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  • M&G Global Basics A Inc
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  • Aberdeen UK Mid-Cap Equity A Acc
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  • Aberdeen Responsible UK Equity A Acc
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  • Aberdeen UK Equity A Inc
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  • Aberdeen UK Smaller Companies Equity A Acc
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  • Aberdeen European Smaller Companies Equity A Acc
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  • Aberdeen European Equity A Acc
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  • Aberdeen Asia Pacific Equity A Acc
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  • Aberdeen North American Equity A Acc
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  • Aberdeen World Equity Income A Dist
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  • Aberdeen Ethical World Equity A Inc
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  • Schroder Japan Alpha Plus A Acc
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  • Schroder QEP Global Active Value I Acc
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  • St James's Place High Octane Acc
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  • St James's Place Global Acc
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  • Scottish Widows UK Select Growth A Acc
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  • Scottish Widows European Select Growth A Acc
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  • Scottish Widows Global Growth A Acc
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  • Fidelity American
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  • Fidelity Japan Acc
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  • Majedie UK Smaller Companies GBP A Acc
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  • Jupiter North American Income Inc
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  • Newton Emerging Income Sterling Inc
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  • Newton Oriental GBP Inc
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  • Lazard Global Equity Income Ret Acc
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  • Aberdeen World Equity A Inc
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  • Newton Global Income GBP Inc
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Look up the fund managers

  • Tom Dobell
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  • Jamie Horvat
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  • Randeep Somel
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  • Graham French
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  • Nick Clay
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  • James Harries
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