Bestinvest has reported a 7.2% fall in heavily underperforming or “dog” assets under management since April, despite market rises.
However, the investment manager and financial adviser warns £13.3 billion is still sitting in dog funds.
Its latest Spot the Dog report says the number of dog funds remains unchanged at 90.
The study contains more difficult news for Gartmore, naming it the fourth biggest manager of underperforming assets.
Gartmore is currently exploring options to sell itself to a buyer after it announced the resignation of key manager Roger Guy yesterday.
Bestinvest says nearly a quarter of Gartmore’s retail assets under management, or £941m, are in underperforming funds.
The group ranks behind Jupiter in first place, whose Income fund accounts for the vast majority of its £2.6 billion in underperforming funds. (article continues below)
Manager Tony Nutt recently said the fund had underperformed due to too large a weighting in media stocks.
Scottish Widows and Scottish Widows Investment Partnership lie in second place, with £2.2 billion in underperforming funds, or 42% of their total retail assets.
Swip has experienced a number of resignations over the last 12 months and took over large quantities of assets from Insight Investment.
Its number of underperforming funds rose from 7 to 11.
Schroders went down from second to third place, with £1.5 billion in underperforming funds, largely Andy Brough’s UK Mid 250 vehicle.
The size of the fund remains a concern for investors, according to Bestinvest.
Below Gartmore in fifth place lies Henderson. The firm moved down one place after Bestinvest acknowledged the group was turning round performance in funds inherited from New Star, which Henderson bought last year.