Bestinvest Spot the Dog Names Consistent Poor Performers
Published / Last Updated on 24/02/2025
Bestinvest’s latest ‘Spot the Dog’ report detailing the most consistent under performing stock market funds has been released.
Reaserch used data to 31 December 2024 and found that 137 funds and fund managers were consistently underperforming in their ‘peer’ fund groups. This means the average number of ‘dog funds’ is unchanged but is still high given the vast amounts investment companies charge and fund managers get paid given these funds are some 26% larger than they were at the last report.
Global funds with expsoure in the Far East and ESG (green/environmentally friendly/ocially responsible) funds were the bigger underperforming sector too.
In reverse order, the bottom 10 dog funds were:
|
Fund |
IA Sector |
Size £bn |
Value of £100 invested after 3 years |
3-year under performance (%) versus benchmark |
|
|
10 |
AXA ACT Framlington Clean Economy |
Global |
0.05 |
£88.69 |
– 41% |
|
9 |
Heriot Global Smaller Companies |
Global |
0.02 |
£86.82 |
– 43% |
|
8 |
AXA ACT People & Planet Equity |
Global |
0.03 |
£86.33 |
– 44% |
|
7 |
SVM World Equity |
Global |
0.06 |
£83.95 |
– 46% |
|
6 |
FP WHEB Sustainability Impact |
Global |
0.58 |
£83.73 |
– 46% |
|
5 |
L&G Future World Sust UK Eq Foc |
UK All Companies |
0.02 |
£72.28 |
– 47% |
|
4 |
Aegon Sustainable Equity |
Global |
0.17 |
£81.39 |
– 49% |
|
3 |
Baillie Gifford Japanese Smaller Companies |
Japan |
0.14 |
£63.76 |
– 49% |
|
2 |
Baillie Gifford Global Discovery Fund |
Global |
0.43 |
£54.17 |
– 56% |
|
1 |
Artemis Positive Future Fund |
Global |
0.01 |
£66.72 |
– 63% |
Source: Spot the Dog, February 2025.
Comment
Is it any wonder that ESG funds are struggling anyway and if you are bottom of ‘the worst’, it is the fact that ESG is now out of favour.
ESG was overhyped and forced on us all by governments after the Paris Climate Agreement. Undersupply of ‘green’ investment opportunities has led fund managers to invest in poorer projects or even an element of ‘greenwashing’ projects.
When you have offshore windfarm project in Torbay due to be finished shortly and a 6 year waiting list to connect to the National Grid meaniing investors have no real return on investment capital for a few years to come. They will come good but not quite yet.
In addition, governments down turning their expectations on ESG as the sheer scale and costs to move to electric vehicles and also eco heating is likely unachievable by 2060 lt alone UK fully carbon enissions negative by 2050. Russia, India and China still account for most of the World’s emissions and with Trump yet again walking again from the Paris Agreement, ESG funds have plummeted.
ESG will prosper and ‘flower’ enventually.