No global or North American funds have reached the top grade in FE’s bi-annual ratings rebalance, while Specialist funds have come out on top.
The top accolade – a five Crown rating – was achieved by 325 funds, with 45 of those funds jumping two grades.
Funds are rewarded with anywhere between one and five crowns, with ratings based on alpha generation, volatility and the consistency with which funds have beaten their benchmarks over the past three years.
Twenty-six funds awarded the top prize were in the Specialist sector, 20 were in the Mixed Investments 40%-85%, while 17 were in the All Companies.
“In the case of North America, yet again we see very few highly rated equity funds. While this can add fuel to the whole debate on whether active managers show value in that market or not – it has undoubtedly got harder to keep spotting cheap stocks, as valuations as a whole have risen,” says Rob Gleeson, head of FE Research.
In contrast, 47 per cent of Europe ex-UK funds have FE Crown ratings of four or five.
Fidelity received 13 top ratings, more than any other asset manager, followed by F&C with 11 and Newton Asset Management with 10.
Previously unrated funds that received five FE Crowns include:
- Baring Frontier Markets
- BlackRock Volatility Strategy II
- BlackRock Volatility Strategy III
- GAM Star (Lux) European Alpha
- Investec Short Dated Bond
- JPM Global Macro Opportunities
- Old Mutual Cirilium Moderate Passive
- Old Mutual Henderson China Opportunities
- Old Mutual Newton UK Income
- R&M World Recovery
- T Rowe Price US Large Cap Growth Equity
- Threadneedle Dynamic Real Return