FE fundinfo’s H1 2025 Crown rebalance reveals resurgence in growth-driven strategies

FE fundinfo, the leading financial data company connecting the investment industry across the UK, Europe and Asia Pacific, today announced the results of its H1 2025 Crown Ratings rebalance, revealing a striking return to favour for growth-driven investment strategies and quantitative fund management, while value funds have faltered.

High-performing funds 

Among the most notable movers were growth funds Morgan Stanley US Advantage, Liontrust UK Focus, which all rose from 1-Crown to earn the 5-Crown status - as well as WS Blue Whale Growth’s surge from 2-Crown to 5-Crown. Baillie Gifford American increased from a 1-Crown rating to 4-Crown. This rebound follows a challenging period since 2022 for many growth strategies, where inflation and interest rates impacted recent Crown assessments. However, with tech stocks rising in 2025, investor sentiment has strongly shifted back in the favour of higher-risk growth strategies.

Conversely, value-based strategies have underperformed. GQG Partners’ Global and US Equity funds, as well as WS Lightman European, have all dropped from 5 to 1-Crown rating, with BNY Mellon US Equity Income downgraded from 4 to 1-Crown rating.

Fund groups 

At the fund group level, Artemis Fund Managers achieved ten 5-Crown rated funds out of 23, an increase of three since the last rebalance. The firm’s SmartGARP quantitative strategy, alongside strong UK fund performance, has positioned Artemis among the industry’s standout performers.

JP Morgan Asset Management UK also demonstrated a significant improvement, earning seven new 5-Crown ratings, thanks in large part to a robust quant strategy behind its UK and Europe Dynamic funds. Meanwhile, Aegon Investments impressed with its fixed income capabilities, securing four 5-Crown ratings from 13 funds.

By contrast, traditionally value-focused groups saw their numbers fall. Schroder UT Managers recorded seven 5-Crown rated funds out of 83, down three from the second half of 2024. Schroder Investment Management (EUR) S.A. stayed at one 5-Crown rated fund, with one fund losing its status and another gaining 5-Crown rating since the previous rebalance. M&G UK and Royal London Unit Trust Managers saw a net loss of five 5-Crown funds compared to the previous rebalance.

Sectors 

From a sector perspective, IA Specialist, IA Sterling Strategic Bond and IA Japan topped the leaderboard, with 23.9%, 20.8% and 20.0% of their funds being 5-Crown rated funds, respectively. In contrast, IA Sterling High Yield, IA Global High Yield Bond and IA China/Greater China all had no 5-Crown funds, underlining regional and credit-related disparities in performance.

In H1 2025, several newly eligible entrants achieved 5-Crown ratings, including:

• abrdn MyFolio Enhanced ESG Index I

• BlackRock MyMap 7 Select ESG

• IFSL Meon Adaptive Growth

• Pacific North of South EM Equity Income Opportunities

• Royal London Sustainable Growth

Charles Younes, Deputy Chief Investment Officer at FE fundinfo, said: "The first half of 2025 marked a renewed confidence in growth strategies. Large-cap tech led a significant rally and assisted in growth-based funds recovering from much of the market volatility, starting in 2022, that impacted previous Crown assessments."  

“Our latest rebalance reflects this renewed momentum, but also highlights how quickly market sentiment can rotate. Value funds have performed well previously due to sticky inflation and high interest rates. While many of these factors still persist across markets, investors' appetite has shifted towards a greater risk tolerance. Quantitative strategies and disciplined benchmarking continue to be critical for consistent performance, particularly in a volatile macroeconomic environment."

Methodology 

FE fundinfo Crown Ratings are calculated through a rigorous quantitative process that assesses each fund’s performance against relevant benchmarks. Ratings are awarded based on a percentile distribution of scores:

• Top 10%: 5 Crowns

• Next 15%: 4 Crowns

• Next 25%: 3 Crowns

• Next 25%: 2 Crowns

• Bottom 25%: 1 Crown

For more information, please visit Ratings | FE fundinfo.