Scope has updated the latest ratings for 7,357 funds. The analysis revealed 301 products that received an upgrade, while 345 products were downgraded. Of particular note are developments in individual funds, which reflect varying trends in the market environment.
A bond fund with assets of almost EUR 13 billion, the JPM Income Fund, once again achieved the highest rating. Its development over the past two years has been marked by significant fluctuations: an initial B rating in early summer 2024 was followed by a downgrade to C. Subsequently, the rating gradually improved, with the fund holding an A rating for approximately six months before it dropped back to B in November 2025. Currently, this bond fund is again rated with the top grade. Its portfolio consists of just under 50 per cent government mortgage-backed bonds, complemented by high-yield corporate bonds as the second-largest component. The credit quality distribution of the securities is broad, with almost 50 per cent AAA ratings and 35 per cent below BBB. The fund demonstrated above-average performance compared to its competitors in terms of both return and volatility across almost all observation periods.
Development of Multi-Asset and Emerging Market Equities
The Schroder ISF Multi-Asset Growth and Income fund staged a remarkable recovery. This multi-asset fund started with an E rating in autumn 2022 and has since progressively improved to an A rating. The portfolio is positioned as a balanced global multi-asset fund with a focus on the US dollar. Its outstanding performance led to this positive assessment. Over a one-year period, its value increased by 20.9 per cent, while its comparison group achieved only 11.5 per cent. Over three and five years, its gains also surpassed the average of its competitors. The fund invests broadly in traditional bonds, convertible bonds and global equities.
In contrast, the Goldman Sachs EMs Eq Pf Base, an emerging markets equity product, was downgraded to E. This fund, which held an A rating five years ago, illustrates that Scope's rating is primarily based on medium- to long-term performance, and a short-term high gain, such as the 36.8 per cent over twelve months (compared to 35.1 per cent for its peer group), is not sufficient. Over five years, the fund's annual return of 4.1 per cent p.a. is significantly below the peer group's 7.2 per cent p.a. In particular, its limited ability to outperform the peer group over the last five years and a low average ranking led to the downgrade. The fund also showed an unconvincing risk profile.
Market Overview and Peer Group Performance in July
The month of July proved challenging for the majority of investors. Only 16 of the analysed fund peer groups closed positively, while 76 recorded losses. Among the best performers were commodity funds and British equity products, each gaining almost five per cent. The comparatively stable performance of dividend equities was notable, confirming their reputation as a value-stabilising portfolio component in July. Regionally, Europe showed the strongest development. The weakest peer groups included equities from China and emerging markets.
- —The alternative energy sector experienced a loss of over ten per cent of its value in July, continuing the negative trend of the previous month.
- —Global technology equity funds fell by more than seven per cent in July.
- —Eurozone long-dated government bond funds recorded an unusually sharp decline of more than three per cent, representing a significant drop for fixed-income securities.
