All funds were scored on a variety of metrics and then ranked, but because only a certain number were included from each sector, some of the top-ranked ones did not make the cut.
Here FE Trustnet looks at those funds that narrowly missed out and what set their rivals apart in the eyes of the FE Research team.
Absolute Return
CF Ruffer Absolute Return has made 52.27 per cent over five years. It sits in IMA Unclassified, making comparisons with the sector of little value.
The fund states its benchmark as cash plus 2 per cent, which cannot be measured directly.
However, it has substantially outperformed the consumer price index, one method of measuring the returns compared with cash.
Performance of fund vs indices over 5-yrs
Source: FE Analytics
The fund was classed as an absolute return fund for the purposes of selection and missed out on the three spots available, along with the five crown-rated Henderson Credit Alpha.
The institutional version of the Henderson portfolio is the best-performing fund over five years in the Absolute Return sector – the retail version was launched in February 2010.
Charles Younes (pictured), analyst at FE Research, says that the funds missed out to Standard Life Global Absolute Return Strategies, Newton Real Return and Insight Absolute Insight.
The Ruffer fund has only a four crown-rating, Younes explains, which counted against it in the final cut. The Newton Real Return fund also has four crowns, but received a higher score on the AFI index, meaning that it was picked by more advisers. A low score on the AFI index also counted against the Henderson fund.
Younes said: "Henderson Credit Alpha is a credit market fund, so it’s also not really in favour at the moment. You really need to understand the credit market to invest in it right now."
Europe
The BlackRock Continental European fund is a top-quartile performer over one, three, five and 10 years, but narrowly lost out to Schroder European Alpha Plus, Jupiter European Special Situations and Henderson European Growth.
The £358.7m fund has five FE crowns and has managed to return 22.3 per cent to investors over the past five years, while the continent it invests in has been struggling through a severe financial crisis.
The average fund in the IMA Europe ex UK sector has lost 5.38 per cent during this time.
Performance of fund vs sector and index over 5-yrs
Source: FE Analytics
Standard Life European Equity Income was only launched in 2009 but has been a top-quartile performer in the IMA Europe ex UK sector since this time and has been rewarded with five FE crowns for its performance.
It is currently yielding 4.71 per cent, according to our data, the fifth-highest figure of the 92 in the sector – although very few have an income focus.
Younes said: "Although both funds had five crown-ratings we had to pick just three. We chose Jupiter because the group score is very high. Jupiter is well known for equities, particularly European equities."
"On the BlackRock fund, the manager Vincent Devlin has a low score, which counted against it."
"The Standard Life fund scored lowly in the IFA index – no-one is picking it right now – and also on the group score."
"We met Standard Life recently to talk about their European team and we are thinking of maybe giving them a good score in the future, but right now they have a low score for European equities because they have no track record in the sector."
North America
Threadneedle American Select scored very highly on FE Research’s metrics and our data shows it is a top-quartile performer over 10 years.
Returns in the sector have been disappointing compared with other equity ones, with the average fund making only 62.76 per cent over a decade.
The manager Cormac Weldon runs two other American funds for Threadneedle – Threadneedle American Extended Alpha and Threadneedle American – both of which won inclusion ahead of this portfolio.
Performance of funds vs sector over 5-yrs
Source: FE Analytics
"This fund is more concentrated so it has had a lower performance," Younes said. "The other funds invest more in small and mid cap companies, which has helped them."
Aside from the two Threadneedle funds, the team also picked AXA Framlington American Growth, which Younes explains has done well because of its high weighting to technology stocks.