Morningstar International Fund Awards Methodology 2019 – China | Morningstar | TBA, Shenzhen, China

Statement of Purpose

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.

The awards are annual, so we believe it is appropriate to emphasize a fund’s one-year performance. However, we do not wish to be in the position of giving awards to funds that have posted a strong one-year return, but have otherwise not delivered good results for investors. We also recognize that investors often use awards as a “buy” signal, and we do not wish to steer them to offerings that may not be good longer-term investments.

The awards methodology therefore emphasizes the one-year period, but funds must also have delivered strong three-year returns after adjusting for risk within the awards peer groups in order to obtain an award.

Eligible Universe
Awards will be determined for each individual national fund market.

Only funds that are recorded in the Morningstar database as available for sale in a given market will be eligible to receive an award in that market.

For the Morningstar Category Awards only: In order to ensure Morningstar analysts can carry out effective qualitative checks for potential winners, the selection range of the Morningstar (China) Annual Fund Awards is confined to Chinese domestic open-end funds which have at least one-year return and are set up with the approval of CSRC. The minimum number of funds required within the same category to offer an award is 5.

There are 5 award categories at present, including Aggressive Allocation Fund, Hybrid Fund, Aggressive Bond Fund, Normal Bond Fund and Pure Bond Fund. Each category has one award winner. Factors such as return, risk, fee level, and management team determine award winners.