Independent investment research company Morningstar Research South Africa Limited (Morningstar South Africa), a subsidiary of Morningstar, Inc. has named the winners of its 2021 South Africa Fund Awards.
ABSA won two awards – for the Best Bond Fund as well as Best Cautious Allocation Fund. Satrix scooped Best Fund House: Larger Fund Range and Kagiso won Best Fund House: Smaller Fund Range.
The annual Morningstar South Africa Fund Awards recognise funds and fund houses that added the most value for investors within the context of their relevant peer group in 2020 and over longer time periods.
“The past year has been incredibly unpredictable with difficult markets, unique pandemic challenges and economic uncertainty, all of which have posed serious challenges to even the most sophisticated of investors.
Against this backdrop, our winners were still able to deliver solid performance relative to their peers in tough market conditions.” said Tal Nieburg, Managing Director for Morningstar South Africa.
The awards methodology emphasises the one-year return period, but funds must also have delivered strong three-and five-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 three of the past five calendar years.
“We believe this combination ensures 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,” added Nieburg.
Morningstar selects the winners using a quantitative methodology with a qualitative overlay that considers the one-, three-, and five-year performance history of all eligible funds, and adjusts returns for risk using Morningstar Risk, a measure that imposes a higher penalty for downside variation in a fund’s return than it does for upside volatility. For the full Morningstar Awards methodology, please click here.
THE WINNERS FOR THE 2021 MORNINGSTAR SOUTH AFRICA FUND AWARDS ARE:
PERSONAL FINANCE