Finalists for Morningstar awards announced

Only New Zealand-domiciled fund managers qualify for inclusion in the awards, and only their retail unit trusts, superannuation funds, and group investment funds influence the outcome. A portfolio of eligible funds is created for each fund manager in each sector – called the fund manager's 'fund portfolio'. Detailed analysis is then conducted on these funds.

Winners are determined 70% by risk-adjusted medium- to long-term track record, and 30% by performance over calendar 2005.

Each fund manager's qualifying funds are included on an asset-weighted basis within each award category to form an overall 'fund portfolio'. The track record for a fund portfolio is derived from a combination of Morningstar's Risk-Adjusted Return measure over two time periods – three and five years. (Hence funds under three years old can't be rated.) The five-year period accounts for 60% and the three-year period for 40%. If only three years of data is available, the three-year figure alone is used. The one-year performance criterion for a fund portfolio is based on the asset-weighted average for the 2005 calendar year. The one-year performance ranking has not been risk-adjusted.

To receive the overall Morningstar Fund Manager of the Year Award, a fund manager must have offered funds in at least three of the six sectors where winners are determined. Points were awarded to each fund manager for the top five placings in each category. The points were then weighted based on the importance of each asset class in the market where awards are given. The fund manager with the highest weighted total points was awarded the overall Morningstar Fund Manager of the Year 2005 title. The Morningstar Fund Manager of the Year 2005 therefore represents the New Zealand fund manager that, in Morningstar’s opinion, has maintained the highest level of funds management excellence during the 2005 calendar year.

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