Morningstar

The Worst-Performing Funds in February

In a strong month for global stock markets, financial technology and UK small-cap funds struggled.

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Key Takeaways

  • Only 6% of all funds available to UK investors had negative returns in February 2025.
  • Fintech, technology and UK small-cap funds lagged.
  • Wellington FinTech saw the biggest loss over the month, down 9%.

Funds investing in financial technology and UK small-caps stocks were the worst performers in what was overall a strong month for fund investors.

Of the 3,130 funds available to UK investors with a Morningstar Medalist Rating, only 203 funds fell over the course of February, while 2,919 funds saw positive growth.

Wellington FinTech, which invests in technology companies that aim to enhance or disrupt traditional financial services, saw the biggest drop in value over the month, down about 9% in the month, and 18% so far this year. Its biggest holding, Latin American ecommerce stock Mercado Libre MELI, dropped around 15% in February. The Wellington fund was one of two fintech funds that featured among the worst 10 performers in February, alongside Robeco FinTech, down 6.54%.

Despite a 2.77% rise in the Morningstar UK Small-Cap Index in February, the average UK small-cap equity fund lost 0.35%. That included Gresham House UK Small-Cap Growth and Liontrust UK Smaller Companies, which featured among the worst 10 performers for February.

The Worst-Performing UK Funds in February 2026

Wellington FinTech

In February, the £37 million Wellington FinTech Fund fell 8.89% and further than the equity technology category, which was down 0.60%. Year to date, the Wellington Management fund has dropped 18.02%. Over the past three years annualized, the fund has fallen 3.24%, while the category has grown 25.27%.

YFS Intelligent Wealth

The £10.2 million YFS Intelligent Wealth fell 8.58% in February, underperforming the global flex-cap equity category’s growth of 1.37%. Year to date, the Yealand fund fell 2.88%. Over the past three years, it climbed 12.84% on average, remaining below the category average of 14.63%.

Baillie Gifford American

The £2.1 billion Baillie Gifford American fell 6.68% in February, further than the US large-cap growth equity’s average fall of 2.39%. Year to date, the Baillie Gifford fund fell 11.72%. Over the past three years, the fund has climbed 14.09%, and underperformed the annualized category return of 20.51%.

Robeco FinTech

The £229.7 million Robeco FinTech fell 6.54% in February while the equity technology category was down 0.60%. Year to date, the Robeco fund fell 13.62%. The fund has underperformed the category over an annualized three-year period too, growing 6.34% while the category has increased 25.27%.

Invesco Global Consumer Trends

The £1.3 billion Invesco Global Consumer Trends fell 6.41% in February. It underperformed the equity consumer goods & services category’s return of 1.64% over the month. Year to date, the Invesco fund fell 7.56%. Over the past three years, the fund has climbed 12.68%, with an annualized return that beat the category’s 9.49% growth.

WS Gresham House UK Smaller Companies

The actively managed WS Gresham House UK Smaller Companies lost 6.23% in February, falling further than the average fund in the UK small-cap equity category, which fell 0.35%. The fund placed in the 100th percentile for performance and lagged its benchmark, the Morningstar UK Small Cap Target Market Exposure Index, by 9.35 percentage points. The £329 million fund has lost 2.85% year to date. Over the past three years annualized, the Gresham House fund has climbed 3.38%, compared to the 3.66% gain for the category.

WS Whitman UK Small Cap Growth

In February, the actively managed WS Whitman UK Small Cap Growth fell 5.65%, while the average UK small-cap equity fund lost 0.35%. The fund placed in the 99th percentile for performance and lagged its benchmark, the Morningstar UK Small Cap Target Market Exposure Index, by 8.77 percentage points. The £26.9 million fund has dropped 1.62% year to date. Over the past three years, the Whitman Asset fund is up 5.02% annualized, while the average fund in its category is up 3.66%.

Pictet Digital

The £2.8 billion Pictet Digital fell 5.45% in February while the average equity technology fund was down 0.60%. Year to date, the Pictet fund fell 9.86%. Over the past three years, the fund has climbed 19.32%, underperforming the category average of 25.27%.

Liontrust UK Smaller Companies

The actively managed Liontrust UK Smaller Companies lost 5.08% in February, falling further than the average fund in the UK small-cap equity category, which fell 0.35%. The fund placed in the 96th percentile for performance and lagged its benchmark, the Morningstar UK Small Cap Target Market Exposure Index, by 8.2 percentage points. The £398.6 million fund has lost 1.2% year to date. Over the past three years, the Liontrust fund has dropped 2.36% on an annualized basis, compared to the 3.66% gain for the category.

Nutshell Growth

The £176.6 million Nutshell Growth Fund fell 5.03% in February, falling further than the average global large-cap growth equity fund, which fell 0.85%. Year to date, the Nutshell Asset Management fund fell 6.49%. Over the past three years, the fund has climbed 15.08% on average, in line with the category average of 15.47%.

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