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Fund filter methodology

This investment shortlist has been compiled with FE Fundinfo. We wanted to produce a shortlist of funds which are well-rated by fund researchers, wealth managers and financial advisers (‘Pros’), and also popular with investors (‘Flows’).

“Pros”

What are the professional fund selectors buying? FE Fundinfo create something called the Adviser Fund Index (AFI) - the indices are comprised of the component parts of the recommended portfolios of a panel of leading UK financial advisers. We have taken the 5 most popular funds over the last 2 Portfolio Rebalances from each of the Balanced, Aggressive and Cautious AFI indices which track the funds financial advisers are buying and recommending.

We also include those funds and investment trusts which appear in at least 2 platform preferred research fund lists, or Best Buy lists (Platforms with research capabilities and fund lists we cover: AJ Bell, Barclays, Charles Stanley, Fidelity, HL, ii, Bestinvest).

“Flows”

Additionally, to add the retail investor voice, we have included the 30 funds which have attracted the most money in the UK over the last 3 months. We have only included funds which are broadly available for purchase on major retail investment platforms today.

Crown Ratings

FE Fundinfo Crown Ratings are quantitative ratings ranging from one to five designed to help investors identify funds which have displayed superior performance in terms of stockpicking, consistency and risk control.

A single FE Fundinfo Crown Rating reflects the lowest tier, and suggests the fund has failed to impress on the above terms, while a five FE Fundinfo Crown Rating reflects the highest tier.

More detail on the FE Fundinfo ratings can be found here.

Risk ratings

FE Fundinfo Risk Scores define risk as a measure of volatility relative to the UK Leading 100 shares. The scoring system uses a minimum of 18 months and a maximum of 3 years of weekly total returns to measure the relative volatility of fund. All values are rebased to Sterling, for UK Risk Scores. Less weight is given to the older returns, so that the score is more sensitive to recent events. Instruments more volatile than the UK Leading 100 shares have a score above 100 and vice versa giving a indication of relative risk. Most funds have a score between 1 and 150.

The Boring Money chilli rating bands provide a simple summary of these more granular FE Fundinfo Risk Scores by giving funds a rating of

  • one chilli if it has a score of 25 or less;

  • two chillies if it has a score of 26 to 55;

  • three chillies if it has a score of 56 to 85;

  • four chillies if it has a score of 86 to 115; and finally

  • five chillies if it has a score of 116 or more.

Hence a fund with four chillies has an FE Fundinfo Risk Score within 15 points of the UK Leading 100 shares.

More detail on the FE Fundinfo risk scores can be found here.

Value rating

Everyone who reviews a fund is asked to rate it on four criteria. Reviewers rate each product out of 10 for “To what extent would you say this fund offers good value?”. The score shown is the average score given by investors, shown as a percentage. For example, an average score of 5 is displayed as 50%.

We are not fund research analysts ourselves and this list reflects those funds and investment trusts which are popular with financial professionals and retail investors today in the UK. Nothing in this list should be seen as a recommendation or endorsement from Boring Money. And please remember that investing in funds carries risk and returns are not guaranteed. If you are uncertain, it may help to speak with a financial adviser.