Morningstar Fund Awards 2019: Etica Obbligazionario Misto R wins award in the Euro Allocation category.
The award is given to the funds that have created value for investors, not just in 2018, but over at least a five-year time horizon. Morningstar’s objective is to recognise those funds that generate performance over the longer-term and at the same time manage investment risk.
The Morningstar Fund Awards are based on a rigorous quantitative and qualitative methodology applied in all European and Asian countries in which Morningstar is present and is designed to recognise excellent asset management over a medium-long term horizon.
Morningstar Fund Awards
The 13th awards ceremony took place on 28 March 2019 at the Circolo Filologico Milanese in Milan.
Awards were announced for the winners in the Italy Equity, Europe Equity and Global Equity categories, the best Fixed Income and Allocation funds and the best Equity, Fixed Income and Overall fund house.
Morningstar Fund Awards Methodology
The Morningstar Fund Awards are given to the funds that outperform in delivering strong long-term results. The analysts reward the best risk-adjusted performance over the last one-year period but also the last three and five years. To be eligible for the Morningstar Fund Awards, the funds must be available to retail investors in Italy and belong to the following Morningstar categories.
• Italy Equity;
• Europe Equity (Europe Large-Cap Value, Europe Large-Cap Blend, Europe Large-Cap Growth, Europe Flex-Cap, Europe Equity Income);
• Global Equity (Global Large-Cap Value, Global Large-Cap Blend, Global Large-Cap Growth, Global Flex-Cap, Global Equity Income).
• EUR Bond (EUR Corporate Bond, EUR Diversified Bond, EUR Government Bond).
• Euro Allocation (EUR Cautious Allocation, EUR Moderate Allocation, EUR Aggressive Allocation, EUR Flexible Allocation, EUR Cautious Allocation – Global, EUR Moderate Allocation – Global, EUR Aggressive Allocation – Global, EUR Flexible Allocation – Global).
Morningstar Fund Awards – Quantitative and Qualitative Aspects
The first aspect taken into consideration by the Morningstar Fund Awards is transparency. Only funds that regularly report their portfolio data, in particular at least four complete portfolios between 1 September 2017 and 31 December 2018 are eligible for an award.
Secondly the analysts look at risk-adjusted performance. 80% of the overall score depends on the return (greater weight being given to 3-year and 5-year performance) and the remaining 20% on risk.
Among the most important qualitative elements are continuity of management and the fund’s stated mandate: any fund that is deemed to have deviated from its stated mandate will be excluded.
For further information see the document: International Fund Awards Methodology