Red flag funds 2017
| Fund | Launch date | Size (£m) | IA sector | Kiid OCF | 1-year return | 3-year return | 5-year return |
| Baring Emerging Markets | 20/11/98 | 7.1 | Global Emerging Markets | 1.9 | 35.9 | 48.7 | 37.2 |
| Castlefield UK Smaller Companies | 01/06/07 | 5.5 | UK Smaller Companies | 2.8 | 22.8 | 26 | 84 |
| CF Purisima EAFE Total Return | 22/02/07 | 5.3 | Flexible Investment | 2.1 | 29.3 | 33.4 | 58.2 |
| CF Purisima UK Total Return | 01/03/07 | 8.2 | UK All Companies | 1.6 | 20.7 | 18.3 | 43.6 |
| FP New Horizon Growth | 06/09/05 | 6.8 | Mixed Investment 40-85% Shares | 1.25* | 16.9 | 28.7 | 46.6 |
| GAM MP UK Equity Unit Trust | 18/05/99 | 9.5 | UK All Companies | 2 | 16.1 | 15 | 52.1 |
| GS Global Equity Partners ESG | 16/09/08 | 2.9 | Global | 1 | 27.9 | 39.3 | 74.4 |
| GS Strategic Global Equity | 04/12/92 | 7.6 | Global | 1.1 | 29.5 | 42.2 | 52.7 |
| Jupiter Global Ecology Growth | 17/08/01 | 9.3 | Global | 0.7 | 25.8 | 36.7 | 77.2 |
| Legg Mason ClearBridge Growth | 25/02/04 | 3.8 | North America | 1.7 | 32.3 | 62.5 | 97.1 |
| Legg Mason IF QS Emerging Markets Equity | 16/02/04 | 3.4 | Global Emerging Markets | 1.9 | 20.9 | 27.4 | 35 |
| Margetts Opes Income | 14/01/03 | 7.6 | Flexible Investment | 1.8 | 14.9 | 25.4 | 52.6 |
| Marlborough Emerging Markets Trust | 08/06/04 | 7.8 | Global Emerging Markets | 1.5 | 38.3 | 46 | 35.6 |
| MFM UK Primary Opportunities | 05/01/96 | 9.5 | UK All Companies | 0.9 | 25.5 | 32.7 | 61.4 |
| MFS Meridian Continental European Equity | 27/02/06 | 7.1 | Europe ex UK | 1 | 22.4 | 21.1 | 68.6 |
| MFS Meridian Japan Equity | 31/07/07 | 7.6 | Japan | 2.1 | 25.8 | 54.7 | 73.5 |
| Neptune Global Smaller Companies | 31/12/07 | 2.7 | Global | 1.2 | 24.9 | 32 | 36.9 |
| Old Mutual Global Bond | 13/09/00 | 7.1 | Global Bonds | 1.4 | 7.8 | 20.5 | 13.1 |
| Principal Asian Equity | 06/11/92 | 5.1 | Asia Pacific ex Japan | 1.5 | 38.9 | 49.6 | 56.7 |
| Principal EM Equity | 19/02/98 | 5.3 | Global Emerging Markets | 1.9 | 35 | 36.5 | 24.7 |
| Principal Global Equity | 04/12/92 | 7.2 | Global | 2 | 22.5 | 46 | 81.4 |
| SF Delmore Growth & Income | 04/11/02 | 2.5 | UK All Companies | 2.7 | 13.7 | 13.9 | 46.6 |
| SLI Short Term Money Market | 15/09/04 | 7 | Short Term Money Market | 0.5 | 0.1 | 0.2 | 0.2 |
| Smith & Williamson Deucalion | 02/04/03 | 7.6 | Flexible Investment | 6.3 | 13.2 | 42.6 | |
| VT Munro Smart Beta UK | 18/09/07 | 6.6 | UK All Companies | 1.9 | 18.2 | 13.2 | 41.3 |
*AMC for B share class as of November 30 2016. Cumulative performance to April 30 2017. Rebased in pounds sterling and ranked within table. Source: Morningstar
Red flag funds methodology
Investment Adviser sought to identify ‘red flag’ funds – those vehicles that could face imminent pressure to be closed or merged with a sister fund – across the Investment Association sectors using data from FE Analytics and the following metric:
• The fund must have been launched in 2008 or earlier (and therefore have been through a full business cycle).
• It must currently have less than £10m in assets under management.
• It must have ranked in the third or fourth quartile of its peer group in terms of its performance in a five-year period.
Red flag funds in numbers
2 – Number of funds that closed from the 2016 list
7 – Number of red flag funds that appear for three consecutive years
4 – Number of funds in the IA Global Emerging Markets sector
5 – Number of funds in the IA UK All Companies and IA Global sectors
25 – Number of red flag funds this year
124 – The number of funds launched in 2016
Launches and closures: UK-domiciled funds from 2012 to 2016
| Number of funds | |||||
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Launched | 237 | 203 | 229 | 205 | 124 |
| Closed | 110 | 153 | 106 | 110 | 100 |
| Total | 127 | 50 | 123 | 95 | 24 |
Source: Investment Association
Red flag funds appearing three consecutive years
| Fund | Launch date | Size (£m) | Kiid OCF | 1-year return | 3-year return | 5-year return |
| Legg Mason ClearBridge Growth | 25/02/04 | 3.8 | 1.7 | 32.3 | 62.6 | 97 |
| Neptune Global Smaller Companies | 31/12/07 | 2.7 | 1.2 | 24.9 | 32 | 36.9 |
Notes: Total return custom table from UK Investment Association universe. Rebased in pounds sterling and ranked within table.Source: Investment Adviser/Morningstar/FE Analytics
Red flag funds appearing five consecutive years
| Fund | Launch date | Size (£m) | Kiid OCF | 1-year return | 3-year return | 5-year return |
| Castlefield UK Smaller Companies | 01/06/07 | 5.5 | 2.8 | 22.8 | 26.1 | 84 |
| FP New Horizon Growth | 06/09/05 | 6.8 | 1.3* | 16.9 | 28.7 | 46.6 |
| MFS Meridian Japan Equity | 31/07/07 | 7.6 | 2.1 | 25.8 | 54.7 | 73.5 |
| SF Delmore Growth & Income | 04/11/02 | 2.5 | 2.7 | 13.7 | 13.9 | 46.6 |
| VT Munro Smart Beta UK | 18/09/07 | 6.6 | 1.9 | 18.2 | 13.2 | 41.3 |
Notes: Total return custom table from UK Investment Association universe. Rebased in pounds sterling and ranked within table. *AMC for B share class as of November 30 2016. Source: Investment Adviser/Morningstar/FE Analytics |
