Crown ratings – value funds suffer while 50 see top upgrade
There have been 50 funds upgraded to the top rating of five Crowns in the latest quantitative FE fundinfo Crown Ratings covering the past six months while funds with a value bias saw downgrades.
In total, there were 134 funds which received a five Crown rating which was comprised of 76 which retained a five Crown rating from the last rebalance in September, 50 which were upgraded and eight which received their first rating.
FE fundinfo Crown Ratings are a quantitative rating determined using FE fundinfo’s performance scorecard process which analyses a fund’s performance over the last three years. The score is made up of three components – alpha, relative volatility and consistently good performance.
The eight funds which received a five Crown rating for the first time, BT Index Balanced, BT Index Growth, Chiodo Diversified Property Development, IOOF MultiSeries 50, IOOF MultiSeries 90, Lakehouse Small Companies, Morningstar Global Shares and Schroder Global Corporate Bond, was an increase from five last September.
However, the results were broader across companies than last year with no single company reporting double-digit five Crowns.
The best company was IOOF which had nine funds listed as five Crowns, including two which received their first rating and two which were upgraded. This was followed by Zurich which retained all five of its five Crowns funds from last September.
Some 54 funds which received a five Crown rating in the last edition were downgraded this year, including five to a one Crown rating. Many of those downgraded had a value bias in their investment process which had underperformed its growth counterparts in the period covered by the rebalance.
AUTHOR
Laura Dew
Recommended for you
Natixis Investment Managers has hired a distribution director to specifically focus on the firm’s work with research firms and consultants.
The use of total portfolio approaches by asset allocators is putting pressure on fund managers with outperformance being “no longer sufficient” when it comes to fund development.
With evergreen funds being used by financial advisers for their liquidity benefits, Harbourvest is forecasting they are set to grow by around 20 per cent a year to surpass US$1 trillion by 2029.
Total monthly ETF inflows declined by 28 per cent from highs in November with Vanguard’s $21bn Australian Shares ETF faring worst in outflows.
