As investors mull over their potential Isa purchases before the end of the tax year, they may be interested in the latest study from Moneyspider.com, the fund research group.

It shows that many of the most well-known fund management groups, such as Halifax and Abbey, have a high proportion of the worst performing funds.

Moneyspider looked at a total of 2,000 funds, measuring them both against the others in their sector and against all funds, as well as against the FTSE 100 index and the return from cash. Each fund received a grade ranging from A (very good) to E (very poor). The fund groups were than ranked from one to 54 based on the percentage of A or B grade funds that they held.

Bottom of the pile, at number 54, was Rothschild, with, in ascending order, Abbey, Halifax, HSBC, Aegon and Scottish Widows. Also languishing in the bottom 20 were other household names such as NatWest, Legal & General and Prudential. Among those joining the back markers was Fidelity, the giant fund management group, which fell 32 places to 41 over 12 months.

At the other end of the scale the leading contenders featured a number of investment boutiques, including Neptune, Artemis and Marlborough. Top spot went to First State, followed by Rathbone, St James’s Place, Neptune, Artemis and Jupiter.

Bill Ross, managing director of Moneyspider.com, says: “Investors mustn’t be deluded by 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.”

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