Over sixty percent of funds offered by the three biggest fund managers have underperformed over the past three years according to research from the Telegraph.
The respective paper claims that their research highlights that fund managers are simply too focussed on launching new funds, rather than turning around the fortunes of their laggard funds.
Their research claims 62 percent of funds managed by Swip and BlackRock have underperformed their peers over the past three years, while 60 percent of JP Morgan AM funds have also delivered sub-par returns.
One advisor described the rate of new fund launches by some firms as ‘ludicrous’ given the amount of under-performing funds in the market:
“The rate at which some of the investment houses launch funds is ludicrous, especially when you consider that the same companies will be running many funds that are seriously underperforming.”