Moneyspider.com reveals extent of underperformance by major fund managers
Press release
23 April 2012
Half of the top 12 IMA fund managers have over 70 per cent of their funds languishing in Moneypider.com’s lowest C – E rankings, reveals online investment fund analyst
Half of all the 12 top managers had over 70 per cent of their funds in the lowest – C/E Moneyspider.com ratings category
The 12 hold between them almost half (48.94 per cent) of all funds under management (£289.2 billion, against a total £590.9 billion funds under management)
Investment giant Scottish Widows, according to Moneyspider.com data, holds £30.9 billion under investment across a range of 85 funds – yet just a quarter, 25.8 per cent of these funds attract an A rating, with 74.1 per cent languishing in the bottom half of the ratings tables
DATA from online investment research analysts Moneyspider.com reveals that investors could be losing out on substantial returns with leading fund management houses – because of the high percentage of poorly performing funds fielded by top investment managers.
Moneyspider.com analysed data on a dozen leading funds managers over the last 5 years to the end of March 2012 (see table and Note 1 below), which between them have cornered almost half (48.94 per cent) of all funds under management (£289.2 billion, against a total £590.9 billion funds under management).
| Fund managers | Funds under
Management £s |
No of MS rated funds | MS A/B rated funds | MS A/B% | MS C/E funds | MS C/E % |
| M&G | £45,321,340,000 | 44 | 25 | 56.82% | 19 | 43.18% |
| Fidelity | £15,872,000,000 | 37 | 9 | 24.32% | 28 | 75.66% |
| Invesco Perpetual | £37,515,030,000 | 29 | 15 | 51.72 | 14 | 48.28% |
| Jupiter | £17,685,746,698 | 30 | 9 | 30.00% | 21 | 70.00% |
| Schroders | £16,087,580,000 | 37 | 19 | 51.35% | 18 | 48.65% |
| Threadneedle | £22,281,533,733 | 74 | 44 | 59.46 % | 30 | 40.54% |
| BlackRock | £20,189,267,352 | 38 | 20 | 52.63% | 18 | 47.37% |
| Henderson | £22,776,156,652 | 69 | 20 | 28.99% | 49 | 71.01% |
| L&G | £20,875,782,322 | 49 | 11 | 22.45% | 38 | 77.55% |
| Scottish Widows | £30,976,101,138 | 85 | 22 | 25.88% | 63 | 74.12% |
| Standard Life | £21,238,027,647 | 60 | 31 | 51.67% | 29 | 48.33% |
| HBOS | £18,383,310,000 | 14 | 1 | 7.14% | 13 | 92.86% |
| Total of 12 FMs | £289,201,875,542 | |||||
| Total market size | £590,902,663,212 | |||||
| Top 12 as % of market | 48.94% | |||||
| Source: Moneyspider.com / Financial Express 21.03.12 | ||||||
(see note at foot of release for explanation on how funds are selected for ranking)*
The fund management giants, which include popular choices such as M&G, Invesco Perpetual, HBOS and Scottish Widows, all market a wide range of funds – but Moneyspider.com’s data reveals that a high percentage of their collective funds are substantial underperformers.
Stick with equity income funds, strategic bond and multi-asset funds, says HFM Columbus investment director Rob Pemberton
Press release
April 16 2012
HFM Columbus investment director Rob Pemberton’s Q2 assessment (attached) – investor advice is to stick with equity income funds, strategic bond and multi-asset funds – uncertain global climate but inflation likely to continue downward trend
Preferred investment portfolios: Equity Income Funds/Strategic Bond Funds/ Multi-Asset Funds
Outlook unpredictable despite some sharp rises in several asset classes
Equity Markets have rallied to date in 2012
Sentiment buoyed following liquidity injection by European Central Bank
Headwinds still remain. Slowdown in China a major threat
Economic growth becoming divergent in developed economies
US showing signs of a meaningful recovery
Inflation should continue to fall in 2012 and monetary policy will remain super-accommodative
No interest rate rise on cards for the next couple of years.
Are employers shooting themselves in the foot by scrapping private healthcare for workers?
PRESS RELEASE
April 2nd 2012
Private health schemes being dropped as costs soar
Well-structured healthcare plans can keep a lid on absence costs, research shows
Staff absences costs UK Plc £17 bn a year
Dropping private healthcare for employees because of rising costs can do more harm than good to a company’s bottom line, according to new research by Gallagher Employee Benefits.
“Precious few employers genuinely understand the cost of absence linked to illness,” says Michael Brown, Managing Director at Gallagher Benefits Consulting. “A well-structured private medical plan can help keep those illness-related costs down.”
A recent survey by the CBI put the cost of absence at £17 bn a year for UK firms. An employee in the private sector will, on average, be absent for 5.9 days a year rising to 8.1 days for public sector staff. (1)
Firms that don’t provide private medical benefits, or allow staff to opt out of company-sponsored healthcare plans, are particularly vulnerable when an employee takes a long leave of absence because of illness, says Brown.
“We had an employee who would have been unable to work for 14 weeks as he waited for NHS treatment. The cost to the company would have been some £24,000,” said Brown. Read more >>