Moneyspider in the News
30/07/2007
Horror funds plague investors
Moneyextra.com
As the fallout from the US credit market continues to rock global indices, thousands of UK investors are likely to be particularly vulnerable, as the latest Moneyspider.com data unearths derisory results from unwieldy, juggernaut funds.
Moneyspider.com's just issued research shows that High Street lenders running big selling funds are being completely outclassed by small, relatively unknown fund management houses.
Natwest and Abbey - two of the UK's biggest fund managers - have the unwelcome distinction of managing the lowest number of A and B rated funds, meaning that investors are missing out on the opportunity to make decent profits from their funds.
Funds from Halifax and HSBC also belong to the chambers of horrors category.
"This research will come as a shock to the many private investors who have put their money into these big brand funds - and it highlights the dangers of simply relying on a well known name to deliver top returns," says Moneyspider.com's Tony Ahearne.
"Leading the High Street horrors is Abbey. Just six of Abbey's 25 funds received a top A or B rating from Moneyspider.com. This means that only 24% of all Abbey funds have A or B ratings - a fact which should ring alarm bells in investors' heads - especially given the volatility of the past few days," says Ahearne.
In stark comparison, over 90% of niche manger First State Investments' UK Ltd funds have top-class A and B ratings.
Artemis Fund Managers comes second in the research table with 9 out of its 10 funds being A or B rated. Others in the top four include Rathbone Unit Trust Management and St James's Place.
"Many investors will be losing money hand over fist by staying in poorly performing funds but a simple check by Moneyspider.com will deliver an instant analysis, updated daily, and will clearly pinpoint the top performers compared with the horrors," he adds.
"In rapidly changing market conditions, as we are currently experiencing, knowing how a specific fund in which you are invested is performing and equally important how other funds compare, is simply good financial common sense."
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