Morningstar Qualitative Awards - EU 2021 | Morningstar Sustainalytics | Online

The Morningstar Awards are designed to help investors around the world identify the year's most exceptional funds and fund managers. Awards are announced throughout the year at ceremonies across Europe, Asia, Africa, and the Americas, honoring managers that have added the most value for investors. Fund and fund group nominees are selected based on sound quantitative methodologies that emphasize outperformance over one-, three-, and five-year periods, while our regional analyst-driven Fund Manager of the Year awards recognize managers who have not only achieved impressive returns, but also been strong stewards of shareholder capital.

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.