View the article online at http://citywire.co.uk/money/article/a875953
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 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 .
|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|
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- M&G Recovery A Inc
- M&G North American Dividend A Inc
- M&G Global Basics A Inc
- Aberdeen UK Mid-Cap Equity A Acc
- Aberdeen Responsible UK Equity A Acc
- Aberdeen UK Equity A Inc
- Aberdeen UK Smaller Companies Equity A Acc
- Aberdeen European Smaller Companies Equity A Acc
- Aberdeen European Equity A Acc
- Aberdeen Asia Pacific Equity A Acc
- Aberdeen North American Equity A Acc
- Aberdeen World Equity Income A Dist
- Aberdeen Ethical World Equity A Inc
- Schroder Japan Alpha Plus A Acc
- Schroder QEP Global Active Value I Acc
- St James's Place High Octane Acc
- St James's Place Global Acc
- Scottish Widows UK Select Growth A Acc
- Scottish Widows European Select Growth A Acc
- Scottish Widows Global Growth A Acc
- Fidelity American
- Fidelity Japan Acc
- Majedie UK Smaller Companies GBP A Acc
- Jupiter North American Income Inc
- Newton Emerging Income Sterling Inc
- Newton Oriental GBP Inc
- Lazard Global Equity Income Ret Acc
- Aberdeen World Equity A Inc
- Newton Global Income GBP Inc
Look up the fund managers
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- Third time lucky? M&G hands Global Basics to Horvat
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by Michelle McGagh on Aug 23, 2016 at 16:08