FE is introducing key enhancements to its FE Crown Fund Ratings to help advisers and investors make more informed investment decisions.
Taking effect from the quarterly rebalancing at the end of September, FE will increase its ratings scale from the current three Crowns to five to allow for greater differentiation between funds.
Through the introduction of greater granularity to FE Crown Fund Ratings, investors can make more distinction between funds that are strongly outperforming and those that are close to the benchmark. Following these changes, the top 10% of funds in each asset class will be awarded five FE Crowns, the next 15% receiving four FE Crowns and each of the remaining three quartiles will be given three, two and one Crown respectively.
Commenting on the changes, FE Commercial Director Matt Surfleet said: "FE provides ratings for over 200,000 funds. The ratings are a trusted and popular fund research tool and we are committed to ensuring they remain relevant to investment advisers. Reflecting this commitment, these changes result from a recent review of the FE Crown Fund Ratings and are in response to feedback from our clients. These improvements will further empower advisers both to make informed investment decisions and to ensure that their client reporting becomes more insightful. At the same time, it will introduce greater clarity enabling investors to see at a glance how a fund is performing against its peer group."
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