Moneyspider in the News

Popular funds mauled in stock market downturn

Reuters 

Thousands of investors in some of Britain's biggest and most popular funds have been hit worst by the stock market down turn, data shows. 

Widely held funds run by the likes of baking giant HSBC and leading investment houses Gartmore, Morgan Stanley and AXA have suffered steep losses in the past year, as turbulent markets take their toll. 

But some of their rivals have weathered the storm well, according to data from fund performance website Moneyspider.com 

In the equity income sector, for example - hugely popular with more cautious investors - HSBC's 338 million pound fund has lost 12.5 per cent over the last 12 months, giving it a lowly 'D' Moneyspider rating on a scale of A to E. 

In contrast, Invesco Perpetual's 'A' rated High Income fund has declined just 6.2 per cent over the same period. 

The heavily UK All Companies sector has also been badly mauled in the downturn of the past six months or so. 

But while Rathbone's Special Situations fund - popular with 'Joe Average' investors - is down 25 per cent, giving it an 'E' rating, and AXA's 'D' rated ethical has dropped 24.7 per cent, Merrill Lynch's UK Dynamic fund has held up far better. The 'A' rated fund declined just 0.56 per cent in the past year. 

Moneyspider monitors 2,000 unit trusts and open-ended investment companies (OEICs) from A (very high) to E (very poor) based on four parameters: a comparison with the performance of other funds in the same sector, the entire funds universe, the FTSE 100 and cash returns.