Morningstar is well-known for its star ratings for mutual funds, which helps investors evaluate funds by measuring their past performance. Morningstar’s annual Fund Awards recognise outstanding achievement in the fund management industry by distinguishing funds that have added the most value for investors over the past year and the longer term. Even against the backdrop of the pandemic, the winners were selected using a quantitative methodology that considers one- and three-year performance and has not differed against the past years.
With three asset management companies winning a total of five awards, the winners are as follows:
|Best Asia-Pacific Equity
||Affin Hwang Select Asia Pacific (Ex Japan) Dividend Fund|
|Best Malaysia Bond||AmanahRaya Unit Trust (Bond) Fund|
|Best Malaysia Bond (Shariah)||AmanahRaya Syariah Trust (Syariah Bond) Fund|
|Best Malaysia Large-Cap Equity||Public Industry Growth Fund|
|Best Malaysia Large-Cap Equity Shariah||Public Islamic Alpha-40 Growth Fund|
In choosing the winners of these awards, a combination of considerations is taken on to ensure that the awards are given to funds which have earned strong one-year results, as well as have the ability to earn strong long-term returns without undue risk.
Firstly, the methodology favours the one-year period, given that the awards are annual, but funds must also have delivered strong three-year returns after adjusting for risk. Next, by using Morningstar Risk to adjust returns for risk, it imposes a higher penalty for downside volatility while keeping with investor preferences. And finally, the winning funds also have to be in the top half of their respective peer groups in at least two of the past three calendar years.
2020 will go down in history as a year where there was a lot of rapid changes and moments of panic, but 2021 will also emerge as a year of optimistic recovery and economic resilience.
“The market volatility resulting from the 2020 pandemic highlighted the importance of investors staying the course and maintaining perspective. After a year of exceptional market performance, global financial markets are increasingly pricing in a strong economic rebound this year. Combined with an elevated risk appetite, investors are advised to be mindful of stretched asset valuations and risk of a market pullback. This year’s award winners demonstrated their abilities to navigate through turbulent times and delivered competitive long-term results for investors,” says Chow.