There has been a sharp proliferation in the number of underperforming “dog” funds over the last six months, according to a popular list produced by wealth manager Tilney.

Tilney Bestinvest produces its 'Spot the Dog' ranking twice a year. To make the list firms need to underperform their sector benchmark (decided by Tilney) by 5 percent or more over three consecutive 12-month periods. Tilney markets the report as “the guide fund managers would love to ban”.

T...