Rising markets have masked the relatively poor results delivered by many fund managers, the latest Spot the Dog report from TilneyBestinvest has found.
The latest edition of the report found 60 ‘dog’ funds - consistent underperformers - which the advisory firm said was a rise from 49 six months ago.
According to the 20-page report, more than £23bn worth of investors’ money is snarled up in these funds, whether through inertia or bad advice, a rise from the £19.6bn recorded six months previously.
Worst of all the IMA sectors is the Global sector, with 19 funds in the doghouse, making up 15 per cent of the entire Global peer group.
The report said: “The unwanted trophy of Top Dog resides with M&G due to the continued woes of its former flagship M&G Recovery Fund and its M&G Global Basics Fund.
“Together these giants account for 34 per cent of all the dog fund assets listed.”
However the report stressed the need for investors to get good advice before simply switching out of one of the dog funds.