FundSource Awards

About the 2016 Awards Selection 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 New Zealand based funds management companies that have retail investment funds promoted to New Zealand investors are considered for the Fund Manager of the Year nominations and Awards.

Based on information at 30 June 2016 a range of quantitative and qualitative screens are applied to each fund manager to generate a nominee list. 

a) Nominee selection process

Quantitative screening

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. The fund manager must satisfy the following:

  • New Zealand based funds management capability
  • Preferred history of three years organisational performance
  • Growth in Assets Under Management 1 July 2015 - 30 June 2016
  • Mainstream fund services available in cost competitive retail form
  • No potentially high up-front costs
  • Peer group relative fee structure
  • General availability to the public, (i.e. not a private fund)
  • Minimum initial investment is in line with industry standard
  • Minimum three or more FundSource star ratings as at 30 June 2016 across representative mainstream funds

Qualitative screening

Successful nominees must then pass a range of qualitative criteria, in line with the FundSource qualitative research criteria covering:

  • Corporate & Investment Governance
  • Investment Philosophy & Process
  • People
  • Portfolio Construction & Implementation
  • Risk Management
  • Investment Fees

b) Nominee list

The nominee list is then constructed containing all fund managers who have passed the range of quantitative and qualitative criteria set out in the nominee selection process. 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. The performance calculation stages are:

  • Representative funds are chosen for each fund manager across mainstream fund categories.  The fund chosen, in a fund category for each manager, will be the most representative, flexible and transparent fund offered by that fund manager and comparable across managers.
  • Each fund’s quantitative and qualitative fund rating is collated by the judges and a winner selected. 

KiwiSaver Manager of the Year

All New Zealand based funds management companies with mainstream KiwiSaver funds promoted to members are considered for KiwiSaver manager of the year nominations and awards.

Quantitative and qualitative screens based on information as at 30 June 2016 are used to generate a nominee list and applied to each fund manager to select the eventual KiwiSaver Manager of the Year Award winner. 

a)    Nominee selection process

Quantitative Screening:                                                                            

  • New Zealand based funds management capability
  • Preferred history of three years organisational performance
  • Growth in Assets Under Management 1 July – 30 June 2016
  • No potentially high up-front costs
  • Mainstream fund services available in flexible, cost competitive retail form, in the following fund sectors: conservative, balanced and growth
  • General availability to the public
  • Three or more FundSource star ratings as at 30 June 2016

Qualitative Screening:

Successful nominees must then pass a range of qualitative criteria, in line with the FundSource qualitative research criteria covering:

  • Corporate & Investment Governance
  • Investment Philosophy & Process
  • People
  • Portfolio Construction & Implementation
  • Risk Management
  • Investment Fees

The nominee list is then constructed containing all fund managers who have passed the range of criteria set out in the nominee selection process.

b)     KiwiSaver Manager of the Year Selection

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:

  1. A representative fund is chosen for each fund 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, flexible and transparent fund offered by that fund manager and comparable across managers.
  2. Each fund’s quantitative fund rating for the three year period to 30 June 2016 are collated. 
  3. Where a manager does not have a minimum three year history for a fund in any category, they will receive a zero performance score for that category.
  4. The following weights are applied to each of these average performance calculations: 
  • Conservative                     33.3%
  • Balanced                          33.3%
  • Growth                            33.3%

Boutique Manager of the Year

The following is a summary of FundSource’s investment research process that is used to select nominees and the eventual winners of the Boutique Fund Manager of the Year Awards. 

Boutique New Zealand based retail fund managers and their funds are considered for Award nomination.

A range of qualitative and quantitative screens based on information as at 30 June 2016 are applied to each fund manager to generate a nominee list.

a)    Nominee selection process

Quantitative Screening:

  • New Zealand based funds management capability with employee ownership
  • Preferred three years of performance history
  • Growth in Assets Under Management 1 July 2015 – 30 June 2016
  • No potentially high up-front costs, restrictions or fees
  • General availability to the public
  • General availability to the public (i.e. not a private fund)
  • Three or more FundSource star ratings as at 30 June 2016

Qualitative Screening:

Successful nominees must then pass a range of qualitative criteria, in line with the FundSource qualitative research criteria covering:

  • Corporate & Investment Governance
  • Investment Philosophy & Process
  • People
  • Portfolio Construction & Implementation
  • Risk Management
  • Investment Fees

a)    Boutique Fund Manager of the Year Selection

The nominees that successfully pass the above screening process are then analysed on a performance based approach. The manager with the highest average quantitative and qualitative fund rating will be the Boutique Award winner. 

All of the above screens are embedded within FundSource’s normal fund research process, several of these forming key hurdles required to be achieved to attain FundSource’s recommended or better qualitative fund rating.

Fund Manager of the Year Sector Awards

All retail New Zealand based fund managers and their funds are considered for Sector Award nominations and Awards.

A range of quantitative and qualitative screens are applied to each sector to generate a nominee list. Quantitative screens based on information as at 30 June 2016 are then used to select the eventual Sector Award winners, from the nominee list.

The fund sectors are:

  • Diversified
  • New Zealand Equity
  • Australasian Equity
  • Australian Equity
  • International Equity
  • Property
  • New Zealand Fixed Interest
  • International Fixed Interest
  • Alternatives*

* FundSource star ratings not available for alternatives sector as less than ten funds have more than three years performance history.

a)    Nominee selection process

Quantitative Screening:

  1. New Zealand resident promoter and open for new investment
  2. Preferred 3 years of performance history
  3. Neutral to positive fund flow for the year
  4. General availability to the public, (i.e. not a private fund)
  5. Peer group relative fee structure
  6. Three or more FundSource star ratings as at 30 June 2016

Qualitative Screening:

Successful nominees must then pass a range of qualitative criteria, in line with the FundSource qualitative research criteria covering:

  • Corporate & Investment Governance
  • Investment Philosophy & Process
  • People
  • Portfolio Construction & Implementation
  • Risk Management
  • Investment Fees

Where two or more funds qualify for nomination, which are mirror funds (in investment terms), the most flexible and transparent fund receives the nomination.

b)    Sector Award winner selection 

The nominees that successfully pass the above screening process are then analysed on a performance based approach. The manager with the highest average quantitative and qualitative fund rating will be the Sector Award winner.  

 

Fund of the Year Longevity Award

This year FundSource has introduced the Fund of the Year - Longevity Award. This award recognises the fund manager who has been able to deliver high and consistent performance over the medium – long term.

All New Zealand based retail funds will be measured and plotted on a three and five year risk adjusted performance basis along with screens embedded within FundSource’s normal fund research process. 

a)    Nominee selection process

Quantitative Screening:

  • New Zealand resident promoter and open for new investment.
  • Minimum five years of performance history.
  • General availability to the public, (i.e. not a private fund).
  • Peer group relative fee structure

Qualitative Screens

Successful nominees must then pass a range of qualitative criteria, in line with the FundSource qualitative research criteria covering:

  • Corporate & Investment Governance
  • Investment Philosophy & Process
  • People
  • Portfolio Construction & Implementation
  • Risk Management
  • Investment Fees 

Please note, FundSource has updated the methodology used in the FundSource Awards process for 2016.