On 17 March, we will announce the winners of the annual Morningstar Fund Awards – Hong Kong. This year, we will present three types of awards: Category Awards, Fund House Awards and the Best MPF Scheme Award.
Morningstar Category Awards
The category awards are awarded to equity funds, and fixed income funds. On the equity side, the categories include Asia-Pacific Equity (Asia ex Japan Equity, Asia-Pacific ex Japan Equity, Asia-Pacific inc. Japan Equity, Asia-Pacific ex-Japan Equity Income), Global Equity (Includes all Global Large Cap style categories, Global Equity-Income, and Global Flex-Cap), Greater China Equity (China Equity and Greater China Equity), and Hong Kong Equity. On the fixed income side, the category is Asia Bond (Asia Bond and Asia Bond – Local Currency).
These awards are given to the funds with the best risk-adjusted performance within their Morningstar Categories or groupings of Morningstar Categories, subject to qualitative review. The objective of the quantitatively driven Morningstar International Fund Awards program is to recognise those funds and fund groups that have added the most value within the context of a relevant peer group for investors over the past year and over the longer-term. As the awards are annual, we believe it is appropriate to emphasise a fund’s one-year performance. However, we do not believe that it serves investors well to give awards to funds that have posted a strong one-year return, but have otherwise not delivered good results for investors. The awards methodology therefore emphasises the one-year period, but funds must also have delivered strong three-and five-year returns after adjusting for risk within the awards peer groups in order to obtain an award. Further, they must have been at least in the top half of their respective peer groups in at least three of the past five calendar years. You can read the full methodology here.
Morningstar Fund House Awards
There are two awards for fund houses – The Morningstar Best Equity Fund House Award, and the Morningstar Best Fixed-Income Fund House Award.
These awards are given to the fund groups with the strongest performing fund line-ups on a risk adjusted basis. Fund performance is evaluated within the Morningstar Categories. You can read the full methodology here.
Best MPF Scheme Award
The Morningstar Best MPF Scheme Award recognizes the MPF (mandatory provident fund) scheme which excels across the key qualitative and quantitative factors which we believe are important when selecting a retirement scheme. Our preferred schemes are those which deliver strong average risk-adjusted performance across its offerings, offer competitive fees, and have a keen consideration for product diversity, transparency and disclosure, and investor experience.
You can read the full methodology here.
