What do FE Crown Fund Ratings aim to achieve? 

The rating identifies funds that have, over recent times, displayed superior performance in terms of: 

• stockpicking 
• consistency of outperformance against a credible benchmark 
• achievement of results at a relatively low risk 

The rating methodology does not simply identify the best performers. Funds can achieve good performance as a result of: 

• making significant bets on market movements 
• sudden bursts of performance, with other periods being indifferent or poor 
• taking very high risks 

Our view is that certain types of performance are more valuable than others. The drivers behind performance recognised by an FE Crown Fund Rating are those that we believe are intrinsically more valuable to investors in nature, because of their solidity. 

FE Crown Fund Ratings are not individual fund recommendations, and should not be seen as specific advice, but a quantitative rating to provide a basis for refining and monitoring a list of funds that would be suitable for consideration. 

Due to the focus on alpha, FE Crown Fund Ratings are by definition aimed at the active investor. Tracker-type funds are rated, but, unless they are poor at tracking the index, their ratings will be of little value.