Morningstar Fund Awards had reached its ninth anniversary. The objective is to acknowledge the funds that have outstanding performance in 2010, as well as delivered strong, consistent risk-adjusted returns for investors in the long run, when compared with the relevant peer group. Most importantly, funds must have at least five years of history, and it takes more than strong returns to merit consideration.
Funds are scored by their total return percentile ranks in their Morningstar categories over one-, three- and five-year period, with 30% of the total score on the one-year period, 20% on the three-year period, and 30% on the five-year period, for a total of 80% allocated to returns. The remaining 20% of a fund’s score, therefore, is allocated to risk adjustment. In doing this, the Morningstar Risk of each fund is assessed.
In addition to the quantitative selection criteria, qualitative screens such as consistency of investment style and accessibility to local market investors, etc. are incorporated to provide a comprehensive review of each eligible winner. In other words, the awards winners not only have brilliant quantitative results, but also withstood a number of vigorous qualitative measures.
For official methodology, please click here.
