SYDNEY, 25 February 2013 – Morningstar Australasia Pty Limited, a subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced the winners of the Australian Morningstar Awards 2013. Perpetual Investments took the top award as Morningstar's Australian Fund Manager of the Year.
"The winners in the Australian Morningstar Awards have all shown themselves to be first-class stewards of their investors' capital. The quality of their people, process, philosophy, and investment style are a testament to this, and continue to enable them to provide outstanding results for their investors," Morningstar Australasia Co-Head of Fund Research Tim Murphy said.
Australian Morningstar Awards 2013 / Winner / Finalists
Australian Fund Manager of the Year / Perpetual Investments / Franklin Templeton Investments, Hyperion Asset Management
Multisector Category, Australia / Perpetual Investments / BlackRock Global Allocation, Colonial First State FirstChoice Investments
Fixed Interest Category, Australia / Perennial Investment Partners / Franklin Templeton Multisector Bond, PIMCO/Equity Trustees
Domestic Equities Category, Australia / Hyperion Asset Management / Investors Mutual, Perpetual Investments
Domestic Equities – Small Caps Category, Australia / Hyperion Asset Management / Fairview Equity Partners, NovaPort Capital
International Equities Category, Australia / MFS Investment Management / Franklin Global Growth, Magellan Asset Management
Listed Property Category, Australia / Resolution Capital Global Property Securities / Cromwell Phoenix Property Securities, Zurich/Renaissance Property Securities
Emerging Manager Category, Australia / Perpetual SHARE-PLUS Long-Short / Altrinsic Global Advisors, Omega Global Investors
Australian Fund Manager of the Year 2013 – Perpetual Investments
The Morningstar Australian Fund Manager of the Year 2013 is Perpetual Investments. Perpetual's well-established investment approach implemented by its team of experienced investors enabled the firm to deliver commendable returns across its broad business in 2012. A penchant for quality has been key to the firm's success, while careful management of wider corporate challenges in recent years to ensure minimal impact on managed fund investors reflects well on Perpetual's underlying processes. Astute asset allocation calls led to the firm winning the Fund Manager of the Year Multisector 2013 award as well, and a proven ability to revamp an existing strategy also successfully delivered to Perpetual the Fund Manager of the Year Emerging Manager 2013 title. These wins, on top of being a strong contender in the Domestic Equities category, all make Perpetual Investments more than worthy of Morningstar Australasia's highest accolade.
Multisector Category, Australia 2013 – Perpetual Investments
The Morningstar Fund Manager of the Year Multisector 2013 is Perpetual Investments. Michael Blayney's astute leadership and the thorough research agenda continue to translate into a well-considered approach to multi-asset investing and outstanding risk-adjusted returns. Two key strengths were showcased in 2012 – the shop's domestic equities capability and shrewd tactical asset allocation ability. This was no flash in the pan, as medium- and longer-term risk-adjusted returns for investors have also been stellar, making Perpetual Investments fully deserving of this award.
Fixed Interest Category, Australia 2013 – Perennial Investment Partners
The Morningstar Fund Manager of the Year Fixed Interest 2013 is Perennial Investment Partners. Perennial's team led by Glenn Feben remains extremely stable and experienced. Drawing on its sensible, value-based investment process, Perennial has produced excellent results for Australian investors year after year, but the team deserves particular credit because of its success at navigating a challenging period for fixed income markets. Perennial demonstrated flexibility while staying grounded in its fundamental heritage, an example of the calibre which makes Perennial the standout in a hotly-contested field.
Domestic Equities Category, Australia 2013 – Hyperion Asset Management
The Morningstar Fund Manager of the Year Domestic Equities 2013 is Hyperion Asset Management. Mark Arnold and Joel Gray's meticulous research and consistent and successful application of Hyperion's investment process since 2000 have generated an impressive long-term track record for investors. Hyperion's stewardship is enhanced by the portfolio managers' willingness to invest their own money alongside that of their investors.
Domestic Equities – Small Caps Category, Australia 2013 – Hyperion Asset Management
The Morningstar Fund Manager of the Year Domestic Equities – Small Caps 2013 is Hyperion Asset Management. This is the second consecutive year Hyperion has won this award. Mark Arnold and Joel Gray's commitment to scrupulous research and analysis of smaller Australian companies and shrewd stock calls have paid off handsomely for their investors in the form of outstanding long-term relative returns and significantly lower volatility. The high-quality team and process in place mean that Hyperion is well-placed to extend this impressive track record into the future.
International Equities Category, Australia 2013 – MFS Investment Management
The Morningstar Fund Manager of the Year International Equities 2013 is MFS Investment Management. MFS possesses a level of consistency in both the calibre of its leadership and the quality of its approach to selecting international companies that few can match. Long-time portfolio manager David Mannheim and co-manager Roger Morley sustained MFS' exceptional performance record with another outstanding year in 2012. Their patient, unwavering focus on investing in high-quality companies that can sustainably grow over time was again on full display, rendering MFS the deserving winner of this category.
Listed Property Category, Australia 2013 – Resolution Capital Global Property Securities
The Morningstar Fund Manager of the Year Listed Property 2013 is Resolution Capital Global Property Securities. Andrew Parsons and his colleagues' combination of robust stock-level research, sound judgement, well-planned thematic ideas, and conviction-based portfolio construction all enable Resolution Capital to continue to provide global property investors with first-rate investment management and performance results.
Emerging Manager Category, Australia 2013 – Perpetual SHARE-PLUS Long-Short
The Morningstar Fund Manager of the Year Emerging 2013 is Perpetual SHARE-PLUS Long-Short. This punchy 125/25 long/short strategy's fortunes have improved dramatically since Paul Skamvougeras assumed responsibility. Skamvougeras and his colleague Anthony Aboud possess specialist shorting knowledge that complements Perpetual's top-drawer stockpicking expertise, an excellent combination that we expect will continue to benefit investors in future years. (Although launched in 2003, the management change and subsequent process overhaul enable the strategy to qualify for the Emerging Manager award.)
The Awards are copyright Morningstar. Fund managers may not publicise the Award(s) without the prior written consent of Morningstar.
Only fund managers with managed funds available for sale in Australia qualify for inclusion in the Australian Morningstar Awards, and only their retail and wholesale unit trusts, superannuation funds, and pension funds are considered.
Winners are determined by a combination of qualitative research by Morningstar’s fund analysts; risk-adjusted returns over medium- to long-term periods; and performance in the 2012 calendar year. Morningstar's fund analysts assess the track record for a fund based on Morningstar's Risk-Adjusted Return measure over the one-, three-, and five-year periods. Funds with less than a three-year track record are not included. The objective is to screen for fund managers that have provided consistently strong returns, and not just reward those with the most impressive one-year return, but which have otherwise struggled to impress.
Morningstar's fund analysts then conduct a qualitative assessment of the fund managers under consideration. Factors considered include the relative quality of the fund manager's people, process, philosophy, and style, along with business and investment disciplines during the 2012 calendar year and over the longer term. The qualitative assessment also captures practical issues that quantitative screens cannot. After assessing the quantitative and qualitative outcomes for each fund manager, Morningstar's fund analysts then debate and decide on the fund managers the analysts believe are worthy winners and finalists across the various sectors. If a verdict cannot be reached by a unanimous decision, then each analyst casts a vote to decide.
Determining the Morningstar Australian Fund Manager of the Year 2013
To receive the overall Morningstar Australian Fund Manager of the Year award, a fund manager must have offered funds in multiple award categories, or have delivered an outstanding outcome for investors. Fund managers were assessed not only on whether they were a finalist in more than one category, but on products that had peer-beating returns but did not obtain a top three position. The fund manager that had strong returns across multiple categories and was deemed a good steward of investors' capital by Morningstar's fund analysts was awarded the Morningstar Australian Fund Manager of the Year 2013 award. The Morningstar Australian Fund Manager of the Year 2013 therefore represents the Australian fund manager that, in Morningstar's opinion, has achieved the highest level of funds management excellence.
Determining the Emerging Manager Category Winner
Finalists in this category are at the discretion of Morningstar's fund analysts. The Emerging Manager category winner is the fund manager that has the ability and opportunity to build a successful long-term track record through its performance and investment management capabilities. The objective of this award is to recognise emerging fund managers in the Australian market along with established fund managers that have developed new capabilities. The funds eligible for this award will typically not have a three-year track record. Finalists are determined from available quantitative data and an assessment of their investment capabilities.
About Morningstar Australasia and Morningstar, Inc.
Morningstar Australasia is a subsidiary of Morningstar, Inc., a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisers, and institutions. Morningstar provides data on more than 416,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than nine million equities, indices, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment adviser subsidiaries and had approximately US$149.0 billion in assets under advisement and management at 31 December 2012. The company has operations in 27 countries.