Invesco is at the forefront of the disgrace of dog funds ahead of Jupiter and SJP


Invesco has dominated Tilney Bestinvests Find the dog List of poorly performing funds for the sixth consecutive year with a wealth giant St. James’s Place and Jupiter also prominent.

A total of 119 funds, valued at nearly £ 50 billion, have been put on the twice-yearly retail fund list to identify those that have consistently underperformed by at least 5% over the past three years.

This was slightly less than the record 150 funds worth £ 54.4 billion six months ago, but still 31% up from 91 a year ago.

“The drop in assets reflects a number of UK funds that have fled kennels, particularly in late 2020, as positive news about coronavirus vaccines led to a significant rebound in some of the hardest-hit parts of the market,” the report said .

Invesco ranked first in the kennel for both the number of funds and the value of the assets they hold, with £ 9.2 billion underperforming 11 portfolios.

That included the Invesco UK income and High income Fund previously managed by Mark Barnett, who left the group in May after several hot years of poor performance. Barnett took over the funds from Neil Woodford in 2014.

The two funds that are now operated by James Goldstone and Ciaran Mallonwere down -25.3% and -27.4%, respectively, compared to an industry average of 8.1% over three years.

Many of Invesco’s other entries in the kennel have now been turned over to new managers as part of a major reorganization so the company may not face further embarrassment in the next edition of the survey.

Meanwhile, Jupiter rose from ninth to second place thanks to two large funds acquired through the Merian acquisition last year.

Jupiter has eight funds in the kennel totaling £ 4.1bn, more than half of which is £ 1.9bn Merian North American Equity and £ 892m Merian Global Equity Medium.

Over three years, they returned 33.8% and 22.3%, respectively, versus an industry averages of 36.5% and 23.7%, respectively.

In the doghouse

group Number of dogs Value of the dogs (£ m) Previous ranking
Invesco 11 9,234.91 1
St. James’s Place 4th 4,051.00 2
Schroders 11 3,969.95 5
JP Morgan 1 3,180.02 45
Scottish widows Schroder 1 3,167.85 N / A
M & G. 5 3,141.08 5
Dimensions 3 2,837.69 7th
Hargreaves Lansdown 1 2,117.12 10
Aberdeen Standard Investments 8th 2.025.71 12

The list also includes serial underperformers valued at £ 514 million Jupiter UK growth Fund that has more than halved in size since 2018 and £ 35m Jupiter growth & income.

Jupiter is in the process of redeploying its investment managers and has closed and merged funds.

SJP, which outsources the management of its in-house funds to outside wealth managers, ranks third in the Hall of Shame with four funds and manages £ 4 billion combined.

However, the number of dogs housed in Tilney Bestinvest’s kennel has halved since the last poll, as three UK income funds – including SJP UK High Income, previously managed by Woodford – have improved.

Among the remaining bad actors is that SJP Global Smaller Companies The Kevin Beck-managed fund fell 0.5% over the three years from an average of 5.6%.

JP Morgan also made the list for its £ 3.2 billion US Equity Income Fund, which posted poor relative returns after being heavily underweight the growth technology stocks that sparked the coronavirus recovery rally.

Other funds on the list are the £ 103 million BlackRock Global Equity, Nick Kirrages £ 230m Schroder Global Equity Income and the £ 82m Liontrust’s European Opportunities Fund managed by Thomas Smith with an AA Citywire rating.

The sectors with the highest percentage of dog funds were global equity income (39%), North America (28%), and global stocks (22%).

“This may not come as a surprise given the strong outperformance of US technology and online stocks recently. Funds that have not been fully exposed to these types of businesses – including those seeking income or targeting undervalued companies – have therefore underperformed significantly, ”the report said.

“Once again it is remarkable how few smaller company funds have made it onto our dog’s sidelines, suggesting that fund managers are doing better work in less explored parts of the market.”

Invesco is at the forefront of the shame of the dog funds before Jupiter and SJP



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