Dud Funds Report 2022 – The Mismanaged £66bn

Fri 22 Jul 2022

By Ruairi Dennehy

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After last week's Vintage Funds Report, this week we issue our Dud Funds Report.

Dud fundsLast week we published our annual Vintage Funds Report, and whilst we discovered that just 4% managed to achieve this menial benchmark, this week we look at the other end of spectrum – the Dud Funds.

To head straight to the report and see the 98 Dud Funds revealed, just click here.

What is a Dud Fund?

A Dud fund is one that doesn’t manage to get into the top 40% of performers in its own sector more than 20% of the time.

Remember, these are not just the bottom 20% of funds today.  These are funds that are consistently dragging along the bottom of their sector based on analysis over the last 10 years.

Yet these duds are still attracting investors’ money. There is over £66 billion invested in these funds.

Think of this as a checklist of the funds you must not own.

Below we show the managers that have the highest number of Dud Funds in 2022, as well as the £ amount invested - the numbers are shocking.

The Dud Fund Houses

The podium places for the stable with the highest number of Dud Funds are below, sorted on the total assets under management (AUM).

Fund Manager

Number of Dud Funds

£AUM in Dud Funds

Halifax

8

£10.71 billion

Janus Henderson

8

£2.24 billion

Abrdn & Aberdeen Standard Life

6

£1.84 billion

Now we aren’t saying these are bad fund managers e.g. Abrdn and Janus Henderson both run Vintage rated funds.  However, these three managers are clear of the pack with regard to the number of Dud Funds, with the largest of these funds the Halifax UK Growth, holding back £3.5bn of investor money.

Although 96% of funds failed to beat our undemanding Vintage benchmark, these 98 funds not only failed this benchmark, but consistently underperformed their sector peers; and investors must be sure they are NOT holding these Duds.

If you can’t find a fund you own, but would like to know its Vintage Rating then feel free to email us and we will be more than happy to help, alternatively you can use our Best Funds by Sector (Vintage) tool.

To read our full Dud Funds Report, download your free copy here.

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