Warning sounded on lack of quality in fund ratings

Biases found in best buy lists

Carmen Reichman
clock • 4 min read

Fund rating lists are biased and often do not base their ratings on the quality of the underlying funds, a report has warned.

Best buy lists and fund rating agencies, often used by advisers to select funds for their portfolios, may be misleading as they do not always choose the funds based on their quality and longevity of returns, the research found. This means some clients may be put in funds that are destined to perform well in the short-term but lack other fundamental strengths that would allow them to function well over longer periods. The report by research consultancy Fundscape and Graham Bentley's gbi2 found deviations in the ratings of some funds and their projected returns over a ten-year horizon -...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers zoomed in on capital accumulation in Q4 2025

Advisers zoomed in on capital accumulation in Q4 2025

Titan Square Mile research finds

Jen Frost
clock 30 January 2026 • 3 min read
Measure for measure: How to track your tracker fund

Measure for measure: How to track your tracker fund

Tracking difference and tracking error

Terry McGivern
clock 28 January 2026 • 3 min read
SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

Healthcare, energy and EM preferred

Linus Uhlig
clock 28 January 2026 • 2 min read