Finding the 2014 Money Management/Lonsec Fund Manager of the Year
THE process Lonsec implemented to select the winners for each award category is consistent with last year's process and consisted of three primary components.
Firstly, as an initial screen, fund managers needed to be rated by Lonsec in their category. Lonsec's managed funds research process is qualitatively skewed.
Lonsec believes that managing money is a combination of art and science, and that there are a number of critical ingredients that combine to produce a quality investment product. Lonsec's assessment of people and the investment process they employ has the greatest impact on its rating process.
From this screened universe, Lonsec utilised two equally weighted components to select the Fund Manager of the Year winners in each category.
The first component was the one-year excess return for representative funds for the calendar year 2013.
Since the majority of retail flows are invested in wholesale trusts via platforms, wholesale trusts were used as the vehicles for performance calculation for managers.
The second component was a qualitative analyst 'momentum' score which the Lonsec research team determined for fund managers in each category. Factors that were considered in this momentum score included process enhancements, team stability and depth, management of funds under management (FUM) capacity and risk management.
The highest scoring fund manager, from the aggregate of these two equally weighted components, was declared the winner in each category.
In summary, managers who have performed well against the benchmark within their category and have strong positive qualitative momentum, as assessed by Lonsec, are finalists for these awards.
In regard to the overall Fund Manager of the Year award, Lonsec used a voting process involving the Lonsec research team.
Firstly, nominations were made for managers. Secondly, nominated managers were then ranked by senior members of the Lonsec research team. The highest ranking manager was declared the winner in each category.
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