In the latest rebalance of its Invest Approved List, FE has cut seven names, including Neil Woodford's £9.2bn Equity Income fund, while adding 13 new funds amid a period of "significant uncertainty".
The data provider replaced Woodford's largest offering, which has been hit recently by several stock price falls, with the £726m Woodford Income Focus fund, launched earlier this year, as it believes it to be "better for income investors".
Charles Younes, research manager at FE, said: "Income Focus does not include a long tail of illiquid unlisted companies, which we believe are not consistent with the aims of an income-focused fund."
Meanwhile, North American equities saw the biggest turnover for the biannual reshuffle, with the £309m T. Rowe Price US Equity and £538m Legg Mason ClearBridge US Large Cap Growth funds being replaced with Cormac Weldon's £600m Artemis US Select and the £630m Baillie Gifford American fund, co-managed by Tom Slater, Gary Robinson and Helen Xiong.
Younes added: "It is hard to find an active manager able to consistently beat the S&P 500.
"The Legg Mason fund has been very benchmark aware and offers little more than a passive strategy. Baillie Gifford American, on the other hand, is different to most US equity managers with its clear bias towards technology names."
Other names cut from the list include the £275m Newton Global Opportunities fund due to "poor stockpicking" and the £572m Aviva Strategic Bond fund, run by Chris Higham and James Vokins, amid concerns the manager "has less freedom than he did previously to implement his strategy".
The £1.2bn Jupiter Absolute Return and £2.5bn Goldman Sachs Global CORE Equity Portfolio vehicles were also added to the list, having impressed the team with their unique capabilities.
Jupiter's James Clunie adds value at the short end unlike many absolute return managers, and does so "very well" according to Younes, while Goldman Sachs' equity fund's "innovative quant driven approach" earned its place on the list.
Yellen hopes unwinding will be like 'watching paint dry'
Sold property business
New CEO David Barron's first
Promises "proportionality" for firms that have taken "sufficient steps"
The sectors that have weathered the storm over the years