This article first appeared in Wealth, The Edge Malaysia Weekly on April 19, 2021 - April 25, 2021
The awards methodology and guidelines for the Refinitiv Lipper Fund Awards are provided below:
General methodology
Criteria (cumulative)
- Funds registered for sale in the respective country as at the end of the calendar year of the respective evaluation year.
- At least 36 months of performance history as at the end of the calendar year of the respective evaluation year.
- Lipper Global Classifications with at least 10 distinct portfolios based on the primary share class definition, excluding residual classifications, institutional and other non-retail funds; private, closed-end, exchange-traded, insurance and linked funds.
- Asset classes: equity, bond, mixed-asset, commodity and alternatives. Absolute return funds screen over all asset types except real estate.
Fund classification awards
The currency for the calculation corresponds to the currency of the country for which the awards are calculated and relies on monthly data. Classification averages are calculated with all eligible share classes for each eligible classification.
The calculation periods extend over 36, 60 and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over three, five or 10 years. For a detailed explanation, please review the Lipper Leader methodology document.
Asset class group awards
Asset class group awards will be given to the best large and small groups separately. Large fund family groups with at least five equity, five bond or three mixed-asset portfolios in the respective asset classes are eligible for a group award. Small fund family groups will need to have at least three distinct portfolios in one of the asset classes – equity, bond or mixed-asset.
The lowest average decile rank of the three years’ Consistent Return measure of the eligible funds per asset class and group will determine the asset class group award winner over the three-year period. In cases of identical results, the lower average percentile rank will determine the winner.
Overall group award
An overall group award will be given to the best large and small group separately. Large fund family groups with at least five equity, five bond and three mixed-asset portfolios are eligible for an overall group award. Small fund family groups will need to have at least three equity, three bond and three mixed-asset portfolios.
An overall group award will be given to the group with the lowest average decile ranking of its respective asset class results based on the methodology described above. In cases of identical results, the lower average percentile rank will determine the winner. No asset class and/or overall group awards are handed out if there are fewer than three competing companies.
Asset class and overall group awards are given to the company that is responsible for establishing the fund by appointing the fund management company, and promoting and/or distributing the fund, the brand of the fund and the product range. This company is also referred to as the promoter or sponsor company.
Specific methodology issues
Asia
- Because of the small market size, the Asian countries will not make a distinction between large and small groups for the single asset class and overall group awards.
- To be eligible for an asset class group award, the groups will need to have at least three distinct portfolios in one of the asset classes: equity, bond or mixed-asset.
- To be eligible for an overall group award, the groups will need to have at least three equity, three bond and three mixed-asset funds.
- Classification awards will be handed out to classifications with at least five distinct portfolios.
- Malaysia: The regular universe excludes the Employees Provident Fund-approved and Islamic funds. Separate classification and group awards will be handed out to Islamic and EPF-approved funds within classifications meeting the aforementioned criteria.
Global Islamic
- All Islamic funds globally within Lipper Global Classifications with at least five distinct mutual funds over the respective time frame.
- Calculation currency is the US dollar.
- No distinction between large and small groups for the single asset class and overall group awards.
- To be eligible for an asset class group award, the groups will need to have at least three distinct portfolios in one of the asset classes: equity, bond or mixed-asset.
- To be eligible for an overall group award, the groups will need to have at least three equity, three bond and three mixed-asset funds.
- The calculation periods are until the end of November of the respective evaluation year.
For a detailed explanation, please read the Lipper Leaders methodology document at here
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