Funds in the IA Global and North American sectors have failed to make the cut after market volatility prompted a major overhaul of FE’s crown rankings.
Not a single fund in either sector was given five crowns by FE, which awarded ratings based on alpha generation, volatility and consistency in the three years to June 30. The latest rebalance sees the second half of 2012 drop out of the assessment period.
The turbulent start to 2016 resulted in 308 portfolios moving positions by at least two crowns, the highest level of activity since July 2012.
Some 325 funds have five crowns, a fall of 20 from the last rebalance in January, while 45 rated vehicles, many of which were in the IA Specialist sector, were bumped up by two crowns.
The most changes occurred in the IA Mixed Investment 40-85% Shares sector, with 37 funds moving at least two rankings, followed by the UK All Companies sector with 36.
With no five-crown-rated funds in the Global and North American sectors, Europe ex UK accounted for nearly half the vehicles in the two top-rated groups.
Head of FE Research Rob Gleeson said: “In the case of North America, yet again we see very few highly rated equity funds. Europe, on the other hand, has been fertile grounds.”
Having gained three-year track records, 12 vehicles jumped straight from unranked to a five-crown ranking.
By contrast, 14 funds fell from being five-crown rated to one. These included a range of income and absolute return portfolios.
