Over the years, Morningstar – the leading provider of independent investment research in North America, Europe, Australia and Asia – has established a stellar reputation for its star ratings of mutual funds and is respected for the coveted annual Fund Awards that recognises outstanding achievement in investment management.
The objective of the Fund Awards has always been to recognise 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 longer periods of time.
This year sees the continuation of this ‘tradition’ as the leading provider of independent research recently announced the winners of the Morningstar Malaysia Fund Awards 2018. A total of five awards were presented at the ceremony at Sheraton Imperial Kuala Lumpur on 20 March.
The ceremony kicked off with an opening speech by Shihan Abeyguna, Head of Business Development, Southeast Asia, Morningstar, followed by the keynote address by Kamarudin Hashim, Executive Director, Market & Corporate Supervision, Securities Commission (SC). Anthony Serhan, Managing Director of Research Strategy, Asia Pacific, Morningstar, also took the stage to deliver a talk on “An International Industry Perspective”.
In his keynote speech, Kamarudin mentioned that the industry’s ability to continue to grow over the years – including periods of challenging market conditions – is largely attributed to its well-accepted long-term investing proposition as well as continued investors’ trust and confidence in the Malaysian capital market.
“To maintain the trust and confidence in our markets, the SC remains focused on continuing with our efforts to ensure sound and stable markets through effective governance and good conduct of capital market participants.
“And to enable our markets to remain competitive and attractive, we will continue with our developmental agenda that are aimed at, among others, providing investors with the widest market access and investment options possible to grow their wealth and savings,” he disclosed.
Meanwhile, Anthony shared that all the awards winners delivered strong three- and five-year returns after adjusting for risk, in addition to outperformance of their peers during the last 12 months.
“These funds have demonstrated that they have the ability to earn strong returns over the long term without undue risk. We believe that taking a patient, long-term view to investing will ultimately help investors reach their financial goals,” he noted.
Anthony and Kamarudin presented the awards to the winners. Overall, the five awards were presented to equity and fixed income funds with outstanding performance delivered consistently over the past three years across five standard categories:
- Malaysia Asia-Pacific Equity;
- Malaysia Large-Cap Equity; and
- Malaysia Large-Cap Equity (Syariah)
- Malaysia Bonds; and
- Malaysia Bonds (Syariah)
Morningstar picks the winners using a quantitative methodology with a qualitative overlay that considers the one-, three-, and five-year performance history of all eligible funds, and adjusts returns for risk using Morningstar Risk, a measure that imposes a higher penalty for downside variation in a fund’s return that it does for upside volatility.
In a nutshell, Morningstar identifies fund managers who are dedicated to investors and outperformed in 2017 in the wake of long-term successes. This success is measured through the observation of trailing performance along with an emphasis on the fund’s ability to protect investors from downside risks over time, with the fund’s management team’s stability and the consistency of investment strategy also taken into account.
The winners of the Morningstar Malaysia Fund Awards 2018 are: