Have British fund managers become a waste of money for investors?

Jupiter UK Growth Fund is also in the top 10. It lagged its benchmark by 24 percentage points, the worst performance in the “all UK companies” sector.

Jason Hollands of BestInvest said that while short-term weakness can be forgiven, continued underperformance should raise alarm bells.

“There may be additional factors at work, such as changes in the management team or the fund being too large, which may limit its flexibility, or a manager straying from a previously successful approach,” he said. “

A spokesman for Lloyds Banking Group said: “We continue to take a long-term approach to investment management and we continually work to improve performance across our entire fund range.”

A Jupiter spokesman said: “We have made changes to the listed funds teams and it is our expectation that these actions will improve future results for our clients.”

Overall, the worst performer was the £39m FTF Martin Currie Global Instructed Fund, which underperformed the global stock market by 34 percentage points.

A spokesman for Martin Currie said the underperformance was due to a recent shift in investment style in favor of high-quality “growth” stocks, which have sold off this year, and away from cheap “value” stocks.

Just 12 per cent of managers of UK-focused funds beat the FTSE 100 in the first half of this year, according to a separate report by broker AJ Bell. The average UK fund lost 14pc against a 4pc drop in a passive fund.

Robin Powell, an investment fee campaigner, said: “Fund managers have told us for years that they deliver the most value in times of volatility. Yet the most volatile trade in recent market history At times, they have largely underperformed.”

Mr Powell said UK-focused fund managers generally had a bias towards small and medium-sized companies, which contributed to their underperformance.

“Smaller companies have a better long-term growth story, which is why fund managers buy them,” he said. “But these stocks are more vulnerable during periods of economic uncertainty.”

Mr Powell advises DIY investors to take a more “passive” approach to their portfolio and choose funds that track the market rather than paying a manager.

For example, if a saver had invested £10,000 a decade ago in the HSBC MSCI World ETF, which tracks global stock markets, it would now be worth £34,035. By contrast, if they had invested in the average actively managed global fund, they would now have £27,934 – or £6,101 less.