FE, S&P award top marks to new equity funds
FE, an investment data and performance analysis firm, has awarded the top FE Crown Fund Ratings of five crowns to ten new funds investing in European and emerging market equity. S&P Capital IQ Fund Research has also graded four new multi-asset funds managed by Close Asset Management.
FE analysts measure the performance of the funds based on alpha generation, volatility and the consistency with which they have beaten their benchmarks. Funds are grouped into 11 sub-asset classes, with only 10% in each group achieving the top grading.
The European list includes Allianz European Equity Income, Scottish Widows HIFML European Focus 1 and Standard Life Investments European Equity, which have delivered three-year returns of 18.50%, 47.01% and 29.93%, respectively to 30 June.
First State Global Emerging Markets Sustainability, First State Latin America and Scottish Widows HIFML Far Eastern Focus 1 funds were among the emerging market funds that received the top ratings of five stars. The top performer was the Latin American fund, which has gained 73.56% over the last three years to end of June.
Baring Global Agriculture, Invesco Perpetual Global Equity Income, Scottish Widows HIFML Absolute Return 1, Premier Multi Asset High Income, Fidelity Enhanced Income, Vanguard FTSE UK Equity Income and Scottish Widows HIFML UK Smaller Companies Alpha 1 have all also bagged the top FE scores.
“We were interested to see a convergence in our ratings as 74 of the funds scoring five FE Crowns are managed by people with an FE Alpha Manager Rating,” said Rob Gleeson, head of FE research.
The Close Asset Management funds rated by S&P have all received the silver rating. The four funds – Conservative, Balanced, Bond Income and Diversified Income – all follow a bottom-up approach based on fundamental company analysis. According to S&P’s fund analyst Randal Goldsmith, the funds were graded on the merit of the “strong team-based approach and a decent track record”.