Quantative judging process - Performance screening criteria
A weighted score was given to each fund's percentile ranking within its sector over each of the three discrete years to 31 March 2017.
There is a 20% weighting to the percentile ranking during the 12 months to 31 March 2015, 30% to 31 March 2016, and 40% to the period to 31st March 2017. In addition, a 10% weighting was given to the fund's Sortino ratio to give an indication of relative risk. The four separate figures were added together to give a single number, with the highest possible score being 100.
Any fund with assets of less than £20m as of 31 March 2017 were stripped out; where the manager has a record of less than three years on that portfolio; if the fund is aimed only at institutional or charities investors, or was not in the top half of its peer group over the 12 months to 31 March, 2017.
The funds covered are UK authorised and FSA-recognised with distributor status.
Statistics provided by FE, Morningstar and Lipper.
Qualitative judging process
Shortlisted funds are then invited to respond to an online questionnaire which asks further questons about the fund, its performance and contributing factors.
For 2017 we have invited a panel of expert fund selectors to judge each category in their area of expertise, and to make recommendations of a first, second and third fund choice.
These recommendations will be put forward to the judging day with the grand judging panel for final review and decision.
Background to the Awards
The aim of the Investment Week Fund Manager of the Year Awards is to highlight funds that produce consistent performance and where there is, in the judges' opinion, a high chance that the manager will not disappoint in the future.
A look at the previous winners section shows many of the managers who won in the past are still considered to be at the top of their peer groups today. While the last few years have seen a high level of manager turnover, the awards are only for funds where the manager has been in place for three years or more. Just as the judges are looking for consistency of return, they believe one of the best ways for a fund to achieve this is via the consistency of a fund manager's tenure. The top managers tend to be those who stick with their portfolios for the long-term.
Growing manager turnover is a side effect of a shift by many talented individuals from large fund houses to boutiques, which often set up their funds offshore in Dublin. As such, the awards also covers offshore funds registered for sale in the UK as well as UK registered funds.
The judges are looking to give awards to funds purely on the basis of consistent performance rather than brand name. With so many offshore funds now available to UK investors, the awards are designed to highlight and celebrate the very best of what is available in the investment universe, not simply the best available within a narrower range of onshore brands.