This month’s bi-annual rebalancing of the FE Crown Fund Ratings saw 19 funds receive the highest score of Five FE Crowns in their first ever rating. Funds must have a three-year track record to be eligible.  Of those ranked within the top 10% of all funds, seven Standard Life Investments My Folio funds made the cut, including SLI MyFolio Managed Income II, Multi Manager IV and Managed V. 

Rob Gleeson, Head of FE Research, said: “FE Crown Ratings are awarded to the best funds in the risk targeted sectors[lc1] , and it’s encouraging to see Standard Life’s MyFolio range of funds dominating this category. There has been a big upgrade in the Alpha component of the Crown ratings this year, which means all of the rated managers have been able to add a significant amount of value over the last three years.” 

Other funds which have achieved the coveted Five FE Crown rating at the first time of asking are FE Alpha Manager Mark Slater’s MFM Slater Income fund, FE Alpha Manager Chris Reid’s Majedie UK Income portfolio and the CF Miton Multi Cap Income fund, run by star managers Gervais Williams and Martin Turner.

Commenting, Gleeson said: “These funds all scored highly on consistency, Alpha and low volatility. Our ratings are calculated on a quantitative basis and these funds look good from that view.”

FE rates funds according to Alpha generation, volatility and the consistency with which they have beaten their benchmarks over the three years to 31 December 2014. The top 10% of funds are awarded Five FE Crowns, with the following 15% receiving Four FE Crowns. FE awarded Four FE Crowns to 10 funds which are receiving their first ever rating in this rebalancing.

Star bond duo Paul Causer and Paul Read’s Invesco Perpetual Tactical Bond portfolio, First State Global Resources and the Schroder Monthly High Income fund were among 14 funds that saw a significant reversal in their fortunes in this rebalancing, gaining Five FE Crowns, up from a previous One FE Crown.

Gleeson added: “Paul Causer and Paul Read’s Invesco Perpetual Tactical Bond fund benefitted in this rebalancing as the poor performance which occurred during the Euro debt crisis in 2011 dropped out of its three-year performance figures. Returns since then have been promising.”

At a group level, Smith and Williamson Fund Administration has the most top quality funds of any company, leading the industry, with 12 of its funds scoring Five FE Crowns. Invesco Perpetual Fund Managers tied for the second place spot with First State Investments UK, both of which now manage 11 funds with a Five FE Crown Fund Rating. Standard Life Investments and Fidelity Worldwide Investments were fourth and fifth, managing 10 and nine Five FE Crown rated funds respectively.