Over £20bn is invested in underperforming UK funds

OVER £20BN IS INVESTED IN UNDERPERFORMING UK FUNDS

A new study into the value of UK investors' money has shown more than £20 billion of the total fund is with companies with a low percentage return.

Wealth managers Rowan & Co Capital Management found that big names on the high street including Abbey, Prudential and the Co-op have all let down the people who have given them their money

The Daily Mail reports that the main result of the survey is that 27 per cent of the total invested is in funds currently in the bottom quarter of the UK All Companies sector, which deals with UK shares alone.

Compared to an average return of 43.25 per cent, companies had a figure of lower than 20 per cent with the worst being GHC UK Equity which at the moment would return only 15.65 per cent of the investment to its customers.

Among other funds with bad investment return figures are Abbey National UK Growth, Prudential UK Growth, Scottish Life UK Equity and CIS UK Growth.

Tim Cockerill, head of research at Rowan, said: "Investors have made the assumption they can trust these high street names to perform well, but they are probably unaware of just how poor they are."

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