SharingAlpha's 2020 top rated funds by category revealed

SharingAlpha, the 'TripAdvisor for fund selectors', has released its most highly rated funds by category for 2020.

JPM Pacific Equity Fund is the most highly rated fund in the Asia Equity category, and Matthews Asia Fds Asia Credit Opps comes top for Asia Fixed Income. 

Within the Emerging Markets Equity category, Templeton Frontier Markets Fund came top rated. The full listing is published below.

SharingAlpha says that because fund selectors determine which funds will be rated and they give that rating knowing it will influence their track record creates a robust model for reliable ratings based on the wisdom of a large number of professional participants while solving potential conflict of interest present in the traditional rating industry.

SharingAlpha is the first user generated fund rating platform that has become the world's largest fund rating agency in terms of the number of fund selectors contributing to its ratings.

The results are based more on qualitatively derived expectations of fund selectors rather than retrospective quantitative filtering. A minimum of 10 ratings for a fund are required to obtain a rating.

Oren Kaplan, co-founder and CEO SharingAlpha, "During the past year, due to the shift toward digital distribution channels, a long list of large international fund providers decided to use SharingAlpha's services. Firms such as Vanguard, M&G, Janus Henderson, Jupiter, Franklin Templeton, Nomura, Hermes, Baille Gifford, MFS, TCW, Allianz, Robeco and many smaller boutiques."

Methodology
SharingAlpha's fund selection ranking is determined by professionals ability to assess the future performance of the funds relative to a comparable ETF. In case the rater expects the fund to outperform the ETF then the overall rating they assign to the fund will be over 3. It will be closer to 5 in case they have a strong conviction.

Hence, a rating of between 1 and 3 is given to funds that are expected to generate negative alpha and a rating of between 3 and 5 is given to funds that are expected to generate positive alpha.

On a monthly basis they compare the ratings with the actual performance of the fund versus the ETF, the closer the prediction with the actual reality the higher the score they get for this rating.

This is called the Hit Score. They compare the overall average Hit Score of all the funds rated by the member and compare it to other members' average Hit Score and rank them accordingly.

Most highly rated funds by category for 2020

Top 50 fund selectors

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