Aberdeen underperformers reduce by 66%

Aberdeen Gilbert Martin Gilbert 700x450Aberdeen has seen a 66 per cent drop in the number of underperforming funds featured in Chelsea Financial’s RedZone ranking this year, latest figures show.

The rankings highlight the worst-performing funds over the past three discrete years in the Investment Association sectors.

Chelsea reports 15 Aberdeen funds in its list this year, compared with 46 underperforming funds listed 12 months ago, with the amount of assets under management represented also falling from £30.75bn to £11.38bn.

Meanwhile, Legg Mason Global Asset Management follows Aberdeen with 11 funds in the list, which includes certain funds inherited from Martin Currie.

Sector-wise, IA Global was the worst-performing sector. with 24 funds and £10.78bn of AUM in Chelsea’s table, followed by the IA Global bond sector, with 15 funds, but three times as many assets at £30.51bn.

The IA UK All Companies peer group has 12 funds in the list with £2.24bn in AUM.

IA Global Emerging Market Bond has nine funds listed, but resulted the third-worst in terms of assets with £8.55bn.

Chelsea’s research director Juliet Schooling Latter says: “Given the universe of stocks available to global managers, investors will be particularly disappointed that so many funds in the IA Global sector are continually underperforming. Thankfully, the number of good, actively-managed global equity funds is greater.

“The IA Global Emerging Market Bond sector has faced a few headwinds recently and it’s worth noting that six of the funds appearing in the RedZone invest in local currency bonds. As the US dollar has continued to strengthen, emerging market currencies have been hit pretty badly, explaining why these funds are suffering. It is something to be aware of when investing in this sector – and indeed others.

“Currency movements tend to balance out over time, but we have seen some dramatic moves in recent months and they can have a big impact on performance. Should the US dollar stabilise or weaken, these local currency emerging market bond funds may well see their performance strengthen.”