The starting universe is every public fund domiciled in either Luxembourg or Ireland (not including the Irish insurance funds universe). We then filter out those funds with less than a three-year track record.
After that, we take only those funds that have a FE Crown Fund rating of four or five. The Crown ratings are a three-year risk-adjusted performance screen similar to Morningstar’s star ratings. Five stars puts a fund in the top 10% of the group, four stars make up the next 15%.
Next, we select those funds that have received a qualitative rating from any of the main ratings agencies of neutral or better. So each fund has passed a thorough due diligence process.
Finally, we divide the universe into the most common and useful sectors and asset types. To keep it simple, we have streamlined the universe into eight classes: Asian Equities, European Equities, Emerging Markets Equities, Global Equities, Specialist, North American Equities, Fixed Interest and Multi-Asset.