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Market rotations see seven funds gain 5-Crown rating at the first time of asking

Seven funds have gained the highest 5-Crown rating at the first time of asking in the latest rebalance of the Crown Ratings, which are published today by global fund data and technology leader, FE fundinfo.

As the global economy emerges into a post-pandemic landscape and markets rotate away from the tech stocks that boomed during Covid-19, funds with a broad range of strategies have joined the latest list of the best performers.

These funds were: EFG Asset Management’s New Capital Global Balanced fund, Legal & General’s L&G Future World Sustainable Opportunities, Ninety One’s UK Sustainable Equity fund, Octopus Investments’ FP Octopus UK Multi Cap Income fund, Omnis Investments’ Asia Pacific ex-Japan Equity fund, PGIM Funds’ European Corporate ESG Bond fund and the S&W Samphire fund, managed by Authorised Corporate Director (ACD) S&W Fund Administration. 

Charles Younes, Research Manager at FE Investments, commented:

“There have been a number of different pressures affecting the markets throughout the second half of last year, which will run into 2022. The impacts of Covid have still been playing out within the economy, as those stocks that soared and those that fell were still being impacted by government policy and the tightening and loosening of restrictions. Additionally, rising inflation and interest rates have had a knock-on effect on the markets in the last quarter, which has led to a rotation between the popularity of income and growth funds. Therefore, it’s not surprising that a broad range of funds and strategies, not concentrated in any one area, have gained a 5-Crown rating during this rebalance.” 

5-Crown rated funds and large changes

Overall, 127 funds gained the 5-Crown rating during this latest rebalance, bringing the total number to 406. To qualify for the highest rating, funds must be in the top 10% of ‘Crown Scores’, which are calculated in three parts, each referenced to a benchmark. Funds must also have a three-year history to qualify.

Four funds, BNY Mellon’s Inflation Linked Corporate Bond fund, Fidante Partners Europe’s Fidante Whitehelm Capital Low Carbon Core Infrastructure fund, Pictet Asset Management’s Global Sustainable Credit fund and PIMCO Global Advisors’ Global Low Duration Real Return, all moved from the lowest 1-Crown rating to the highest 5-Crown rating.

Meanwhile the impact of the market rotation over the past year has also seen 132 funds losing their 5-Crown rating during this rebalance. Among those falling from the highest rating to the lowest were AXA Investment Managers’ World Funds Asian Short Duration Bonds fund, Ninety One’s Global Macro Allocated fund, PIMCO’s GIS Dynamic Bond fund and S&W Fund Administration’s S&W Daisybelle fund, who were affected by this shift. 

Sectors and groups

The latest rebalance was the first to capture data from the eight new sectors launched by the Investment Association last year. Two of these sectors saw the highest percentage of their funds gaining a 5-Crown rating, with the IA Infrastructure sector coming out on top, with 50% of its 18 funds gaining the rating, followed by the IA Financials and Financial Innovation sector, with 4 of its 11 funds (36.4%) awarded 5-Crowns. 

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