Morningstar International Fund Awards Methodology 2019 – Malaysia | Morningstar | TBA, Kuala Lumpur, Malaysia

Statement of Purpose

The objective of the quantitatively driven Morningstar International Fund Awards program is to recognise 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 program is distinct from the qualitative awards issued by Morningstar’s research team.

The awards are annual, so we believe it is appropriate to emphasise a fund’s one-year performance. However, we do not believe that it serves investors well to give awards to funds that have posted a strong one-year return, but have otherwise not delivered good results for
investors.

The awards methodology therefore emphasises 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. Further, they must have been at least in the top half of their respective peer groups in at least two of the past three calendar years. We believe this combination will ensure that the awards are given to funds which have earned strong one-year results, and have also shown they have the ability to earn strong long-term returns without
undue risk.

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, only funds that have reported at least one complete portfolio to Morningstar between 1 September 2017 and 31 December 2018 are eligible for an award.

The following fund types are excluded from the universe: Insurance funds, closed-end funds. Currency-hedged share-classes of funds are also excluded. All funds or share classes in unrated Morningstar categories are excluded from participating in the awards.

The smallest 10% of funds in each category are excluded from the awards based on the latest June end portfolio size expressed in Malaysian Ringgit. In lieu of this measure, analysts may also exclude funds with less than MYR$25 million in assets at 30 June or the nearest date for which assets are available.

Morningstar Category Awards Methodology

Categories Eligible for Awards

Equity:
• Malaysia Large-cap Equity
• Malaysia Large-cap Equity (Syariah)
• Asia-Pacific Equity (Asia-Pacific ex Japan Equity, Asia-Pacific Equity)

Fixed Interest:
• Malaysia Bonds
• Malaysia Bonds (Syariah)