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Most Equity Funds of Wealth Managers Disappoint

Compared to respective benchmark indices

The new report released by, an independent information platform for private investors, has concluded that the equity fund returns of the 15 biggest wealth managers and banks worldwide are mostly worse than the respective benchmark indices.

The report analyses equity funds with focus on the regions of US, Europe, Asia and global coverage. During the last 5 years about 80% of the funds have returned below average returns and only funds from Deutsche Bank (DWS), the provider Black Rock associated with Merrill Lynch and Lombard Odier were able to perform better than the benchmark indices.

Two other wealth management companies did not have a sufficient number of relevant funds that qualified their inclusion in the analysis. In case of equity funds focusing on the US, five providers could at least outperform the index. In the case of those focusing on Europe only three could outperform the index. And in case of funds focusing on Asia all the providers performed worse than the index.

Steffen Binder, research director of, said: “It is a known fact that funds generally perform worse than the respective indices but the fact that the self-claimed wealth management specialists have performed so much worse than the market, is very disappointing. As the providers often include in-house products in the portfolio for their clients, these are often paid for twice, once due to the high fund charges and again through lost profits“.