Morningstar Fund Award 2010

Morningstar Asia will announce the results of Morningstar Fund Awards of the year 2010 for Hong Kong, Taiwan, Singapore, Malaysia and Thailand. The results announcement of Asian markets with details set forth below.

The objective of the Morningstar Fund Awards is to recognize 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. In this connection, to be eligible for the awards, funds must have at least five years of history in the Hong Kong, Singapore and Taiwan markets, and whereas three year for the Malaysia and Thailand market, and it takes more than strong returns to merit consideration.

The funds must pass through our vigorous quantitative and qualitative selection criteria. 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. Similarly, scoring for the Malaysia and Thailand market is based on one- and three-year periods, allocated with 25% and 55% respectively.

It is not enough for a fund to have delivered strong 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. It is a robust risk measure which uses utility theory to penalize funds more for downside variation in returns than for upside volatility – in keeping with actual investor concerns.

More than the quantitative selection criteria, the qualitative ones follow. For example, if our fund analysts collectively believe the changes to the management team or structure of the fund could negatively impact future results, we won’t give that fund an award.

Stay with us and keep updated with the Morningstar Fund Awards.

For official methodology of each market, please follow the link below:-

Hong Kong

Taiwan

Singapore

Malaysia

Thailand