Hargreaves Lansdown has hit out at Bestinvest over its spot the dog report that labelled Jupiter as the biggest provider of dog funds.
It says Bestinvest relies purely on past performance data in producing the report and performs no qualitative analysis.
“Anyone can look at a past performance table, I do not need to read spot the dog for that”
Meera Patel, a senior analyst at Hargreaves Lansdown, says: “Anyone can look at a past performance table, I do not need to read spot the dog for that. It tells an investor nothing about why those funds have been poor or which ones are expected to do well. Bestinvest should put their neck on the line to offer analysis on funds they think should do well.”
She defends Jupiter, which the Bestinvest report said has £2.62 billion sitting in dog funds that are performing poorly. She says: “Jupiter is home to some of the best managers in the industry.” (article continues below)
The Bestinvest report focused on Tony Nutt’s £2.47 billion Jupiter Income fund that has suffered a performance lull in recent years, but Patel says he “still has a lot of credibility”.
Adrian Lowcock, a senior investment adviser at Bestinvest, says: “Tony Nutt is an example of a fund manager who has appeared in the dog list twice now and it is our duty to flag it up. I think we are doing the right thing to champion the consumer. We should all be concerned about doing that rather than making accusations of our competitors.”