Using Morningstar Direct data, Financial-Planning released a list of the 20 worst-performing actively managed mutual funds in the industry over the past three years, finding that a combination of high expenses and poor performance combined to place customers at a significant disadvantage as they were harmed not just by the unsuitable fund's poor return, but by the added fees as well.
As in years past, energy funds featured prominently in this list, as did international offerings. For instance, from the 2017 list, Ivy Natural Resources (IGNAX) made a repeat appearance, as did VanEck's Global Hard Assets (GHAAX), Victory Global Natural Resources (RSNRX), Invesco Energy (FSTEX), and Fairholme (FAIRX).
Meanwhile, others simply switched from one firm fund to another (e.g., 2017's Oppenheimer Real Estate (OREAX) was replaced in 2018 by Oppenheimer SteelPath MLP offerings MLPZX and MLPOX, Janus Henderson Contrarian (JACNX) was replaced by Janus Henderson European Focus (HFEAX), and JPMorgan Small Cap Value (PSOAX) was replaced by JPMorgan Europe Dynamic (VEUAX).
Of the 20 worst performers in 2018, only one, Putnam Capital Spectrum, PVSYX, had an expense ratio less than one percent. By contrast, the top-performing funds' fees averaged 0.99%.
| 15 | Franklin Biotech Discovery A (FBDIX) | Templeton | -1.21% | 1.02% |
| 14 | JPMorgan Europe Dynamic A (VEUAX) | JPMorgan | -1.21% | 1.24% |
| 13 | Multi-Manager Alt Strat A (CPASX) | Columbia | -1.47% | 1.75% |
| 12 | Oppenheimer SteelPath MLP Income Y (MLPZX) | Oppenheimer | -1.49% | 1.11% |
| 11 | Victory Global Natural Resources A (RSNRX) | Victory | -1.75% | 1.48% |
| 10 | Oppenheimer SteelPath MLP Alpha Y (MLPOX) | Oppenheimer | -2.32% | 1.83% |
| 9 | Ivy Energy Y (IEYYX) | Ivy | -2.44% | 1.34% |
| 8 | Eagle MLP Strategy I (EGLIX) | Eagle | -3.05% | 1.41% |
| 7 | Invesco Energy (FSTEX) | Ivesco | -3.48% | 1.33% |
| 6 | Putnam Capital Spectrum Y (PVSYX) | Putnam | -3.83% | 0.41% |
| 5 | LoCorr Market Trend I (LOTIX) | LoCorr | -4.97% | 1.76% |
| 4 | Natixis ASG Mgd Futures Strategy Y (ASFYX) | Natixis | -5.20% | 1.50% |
| 3 | Janus Henderson European Focus A (HFEAX) | Janus | -5.29% | 1.34% |
| 2 | Fairholme (FAIRX) | Fairholme | -6.08% | 1.02% |
| 1 | Catalyst Hedged Futures Strategy I (HFXIX) | Catalyst | -6.41% | 2.04% |
If you have invested with a broker or financial adviser whose unsuitable recommendation to invest in one of these poorly performing and high-fee mutual funds has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.