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Two of the biggest and most trusted brands in the world of investment and banking - Fidelity and Halifax - were the worst performing fund groups over the last year, says Moneyspider.
Despite strong performances from a number of funds - amongst them 'Fidelity Special Situations', 'Fidelity Emerging Markets' and 'Fidelity European Opportunities' - Fidelity, undisputed as the world's leading fund management group, fell an incredible 32 places over the year to rank 41st of 54 fund management groups analysed by Moneyspider.
Of the High Street banks, HSBC, Abbey National, Halifax and NatWest ranked lower still. Collectively, these four groups manage more than £30 billion on behalf of UK investors. Halifax was the biggest faller over the course of the year, crashing 38 places to rank 52.
The poor performance of both Fidelity and Halifax demonstrate the dangers of investing in a brand name. Investment rating service Moneyspider ranked fund management groups against each other, taking into account the percentage of Moneyspider 'A' and 'B' rated funds in their respective stables.
So-called "boutique" fund management groups continued to flourish at the top of the tables over the year, with First State, Rathbone and Neptune taking 1st, 2nd and 4th spots respectively.
Bill Ross, Managing Director of Moneyspider commented, "At this time of year investors are absolutely bombarded with marketing materials and gimmicks, and what they perceive to be great deals. However, as our latest research has shown, some of the biggest and best known fund management groups offer some of the worst performing funds.
"Investors mustn't be deluded by headline performance numbers and glossy advertising or allow themselves to be drawn in by the superficial attractions of investing simply because they're dealing with a big brand name. It's the fund performance that matters, not the brand or the fund management group's advertising presence."
12 March 2007 © Moneyextra.com
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