Scottish Widows funds dubbed ‘dogs’ in new research

PRIVATE investors and pension savers have £23 billion sitting in funds that consistently under-perform, with Scottish Widows the biggest culprit, according to a report out today.

The latest Spot the Dog fund research from Bestinvest reveals that there are 64 unit trusts and open-ended investment companies in the kennel after failing to deliver for investors.

It also identifies 89 unit-linked pension funds holding assets totalling £10.9bn that meet the report’s “dog” criteria.

The biannual bulletin singles out funds that have underperformed in each of the last three years and by more than 10 per cent over the three years to the end of 2012.

Of the assets stuck in underperforming funds, Scottish Widows and Scottish Widows Investment Partnership (Swip) account for £3.96bn.