About the 2012 Selection Process
The FundSource Awards Process
The structure of the Awards process reflects FundSource’s broad desire to;
- ensure the Awards criteria are understood by the target audience (members of the public who may use the Awards in the selection of managed funds) and,
- ensure a high level of transparency of the Awards judging process to maximise objectivity, clarity and understanding of the Awards process.
Fund Manager of the Year
All NZ based funds management companies that have retail investment funds promoted to NZ based investors are considered for the Fund Manager of the Year nominations. A range of qualitative screens are applied to each Fund Manager to generate a nominee list.
The nominee list is then constructed containing all fund managers who have passed the range of qualitative criteria in the nominee selection process.
Quantitative screens based on information as at 30 June 2012 are then used to select the eventual Fund Manager of the Year Award winner, from the nominee list. Selection of the Fund Manager of the Year is derived from a performance based process that aims to fairly represent the achievement of each fund manager on behalf of its clients.
However, where a manager does not have a minimum 3-year history for a fund in any category, they will receive a zero performance score for that category.
KiwiSaver Manager of the Year
All NZ based funds management companies that have Diversified KiwiSaver funds are considered for the KiwiSaver Manager of the Year nominations and awards. A range of qualitative screens is applied to each KiwiSaver Manager to generate a nominee list.
The nominee list is then constructed containing all KiwiSaver managers who have passed the range of qualitative criteria in the nominee selection process.
Quantitative screens based on information as at 30 June 2012 are then used to select the eventual KiwiSaver Manager of the Year Award winner, from the nominee list. Selection of the KiwiSaver Manager of the Year is derived from a performance-based process that aims to fairly represent the achievement of each fund manager on behalf of its members.
The performance calculation stages are:
A representative fund is chosen for each KiwiSaver manager across each of the three mainstream diversified fund categories. The fund chosen, in each fund category for each manager, will be the most representative fund offered by that KiwiSaver manager and comparable across managers.
Each fund’s quantitative Fund rating for the three year period to 30 June 2012 are collated.
Where a manager does not have a minimum 3-year history for a fund in any category, they will
receive a zero performance score for that category.
The following weights are applied to each of these average performance calculations:
- 33.3% Conservative
- 33.3% Balanced
- 33.3% Growth
Sector Awards
New Zealand’s funds management industry has nearly 300 open-end funds covering a wide diversity of investment portfolio types and objectives delivered under several legal structures. FundSource’s Fund Manager of the Year - Sector Awards research process groups these available funds into their relevant investment sector categories.
All retail NZ based fund managers and their funds are considered for Sector Award nominations. A range of qualitative screens are applied to each sector to generate a nominee list. The funds that successfully pass the screening process are then analysed on a performance-based approach.
Quantitative screens based on information as at 30 June 2012 are then used to select the eventual Sector Award winners, from the nominee list. First of all the funds are screened based on their quantitative star rating from the FundSource monthly performance tables for 30 June 2012. Funds with three or more stars go through to the last screen. The fund with the highest average quantitative Fund rating will be the fund sector winner.
All of the above screens are embedded within FundSource’s normal fund research process, several of these forming key hurdles required by a fund to attain FundSource’s recommended or better qualitative fund rating.