Investment Week reported the Tilney Bestinvest “Dog List” today, highlighting “OEICs and unit trusts that have underperformed their benchmarks for three consecutive years and by more than 10% over a three-year period.”
Should Performance be the only criteria on which a fund should be judged? The last few weeks have put Liquidity in the limelight, the last few years have highlighted the significance of team structure vs star fund manager and 2008 put Leverage in investors’ cross hairs.
Performance is a review of what has happened and cannot be changed. However, Liquidity, Team Structure, Leverage and many other qualitative parameters affect how a fund might perform (or protect on the downside) in the future. In our opinion, the “Dog List” is too blunt an instrument for fund de-selection.
Please contact us if you would like to assess funds’ qualitative and quantitative features before you make selection (or de-selection) decisions.