The objective of the quantitatively driven Morningstar Fund Awards 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.
Do note, this is distinct from the qualitative ratings issued by Morningstar’s research team.
Looking at performance…
The awards are annual, so 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.
Therefore, the awards methodology 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.
We believe this combination will ensure that the awards are given to funds which have earned strong one-year results, and have also shown they have the ability to earn strong long-term returns without undue risk.
Category Awards: List of nominees and how they are arrived at
Fund House Awards: List of nominees and how they are arrived at
Morningstar Awards in 25 countries across the globe
