Underperfomers in Relegation Zone see assets swell by £1bn

The UK's worst-performing funds have seen their assets swell by £1bn since the start of the year, research from Chelsea Financial Services shows.

Chelsea says assets in its Relegation Zone of underperforming funds now stand at £14bn, with market volatility pushing the number of funds into its list from 79 to 85. The largest of the laggards is the £1.6bn Scottish Widows UK Growth fund, which also featured in the last Relegation Zone, published in December. This fund has fallen 12.4% over three years compared to an average fall of 8.5% among its peers, yet £17.5m has flowed into the fund since the start of the year. “The correlation between underperforming funds and increased asset inflow needs to be broken; inertia remains the b...