The RedZone
Good, independent fund research can really make a difference to an investor’s finances, helping to maximise returns over the long term.
However, while choosing the right fund can significantly boost returns, picking the wrong fund can have a devastating effect on your investments too. That’s where the Chelsea RedZone comes in.
What is the RedZone?
The RedZone, which we feature in our Spring Viewpoint, puts a spotlight on funds that have fallen short of expectations over the past few years*. We hope you find it informative and, if anything, a chance to scan over your portfolio and see what funds might have been holding back your returns.
Please note, we only feature RedZone once a year, in our Spring Viewpoint.
DropZone
The Dropzone is the top 10 funds with the worst underperformance against their sector average over the course of three years. This year, Marlborough Global Innovation has been awarded the unwanted title of ‘King of the DropZone ’, having underperformed the global sector by 56.55% over the past three years.
| Position | Fund name | % underperformance from sector average |
|---|---|---|
| 1 | IFSL Marlborough Global Innovation | -56.55 |
| 2 | Premier Miton US Opportunities | -46.83 |
| 3 | WS Montanaro Better World | -46.70 |
| 4 | McInroy & Wood Emerging Markets | -43.16 |
| 5 | Premier Miton Global Sustainable Optimum Income | -40.12 |
| 6 | AXA People & Planet Equity | -36.45 |
| 7 | McInroy & Wood Smaller Companies | -36.22 |
| 8 | FP WHEB Sustainability Impact | -36.19 |
| 9 | Thesis Stonehage Fleming Opportunities | -34.12 |
| 10 | Schroder US Mid Cap | -33.73 |
Important Information
*RedZone entry requirement – three years of consecutive 3rd of 4th quartile performance. At least 10% underperformance versus the sector average. No new manager in the past 18 months.
Past performance is not a reliable indicator of future returns. Please note that the RedZone and DropZone do not constitute investment advice. If you are in any doubt as to the suitability of any investment you should seek professional advice. An appearance of any fund in these lists is not an indication they should be sold or switched.
