Summer 2014


The Morningstar Hong Kong Fund Awards are designed to help investors around the world identify the year’s most exceptional funds and fund managers in Hong Kong, honouring those that have added the most value for investors.
HONG KONG The two fund house awards in Hong Kong, Best Equity Fund House and Best Fixed Interest Fund House, acknowledge the fund houses with the strongest risk-adjusted performance across their fund line-ups.  This year, the awards went to First State and BlackRock. “We are pleased to have a mix of high-quality asset managers winning awards across our equity and fixed income categories,” says Wing Chan, Morningstar Asia’s director of fund research.  “Our fund house winners this year, First State and Pimco, are established investment managers that are well regarded by investors globally.”  Chan says both fund providers have delivered outstanding risk-adjusted returns across their range of funds. Hong Kong winners SINGAPORE
The Morningstar Singapore Fund Awards recognise retail funds and fund houses that added the most value for investors within the context of their relevant peer group in 2013 and over the longer term. Return calculations are adjusted for risk; there is a higher penalty for downside variation.
The fund house award, best equity fund house, acknowledges the fund group with the strongest risk-adjusted performance across its fund line-up.  As is the case in other countries, winners are selected using a quantitative methodology with a qualitative overlay, developed by Morningstar, that considers the one-, three-, and five-year performance history of eligible funds. Morningstar adjusts the returns for risk by applying its risk filter.  This is a measure that imposes a higher penalty for downside variation in a fund’s return than it does for upside volatility.  Wing Chan, Morningstar Asia’s director of fund research, says its range of equity funds has a high relevance to investors based in Singapore. Winners Singapore
The selection range of Morningstar China Annual Fund Awards is confined to Chinese domestic mutual funds and hedge funds, which have at least a one-year return. With the increased appeal of hedge funds, Morningstar China has added a new awards category that focuses on hedge funds.
The range of funds rated by Morningstar China includes open-end funds and closed-end funds that are set up with the approval of the China Securities and Regulatory Commission.  Over the last decade, hedge funds have proliferated in China and become an accepted investment vehicle for institutional investors and high net-worth individuals in the country.  Morningstar China has, therefore, added one hedge fund category that recognises this: Best China Long/Short Equity Fund.  With the Morningstar Fund Awards being held annually, the emphasis is usually on a fund’s one-year performance.  However, Morningstar Asia does not wish to be in a position of giving awards to funds that have posted a strong one-year return, but have otherwise not delivered good results for investors. The concern is that investors will often use awards as a “buy” signal, and Morningstar does not wish to steer them to offerings that may not be good longer-term investments. Funds must, therefore, also have delivered strong three-year returns, after adjusting for risk within the awards peer groups in order to obtain an award.  This philosophy applies for all awards, hedge funds or not. Winners China
TAIWAN Morningstar Asia presents 13 category awards in Taiwan, aiming to identify the most value-adding mutual fund in each category. The Morningstar Taiwan Fund Awards are highly regarded by the local investor community and the fund industry. 

Taiwan is one of the major host economies of funds in Asia. 
In response to the great interest in technology equity from local investors, the Morningstar Taiwan Fund Awards feature the only technology equity category award in the region.  Morningstar also promotes the idea of long-term investment and the concept of asset allocation. The awards methodology emphasises the one-year period, but funds must also have delivered strong three- and five-year returns, and been at least in the top half of their peer groups in at least three of the past five years. Winners Taiwan KOREA
There are a variety of categories varying country by country, such as Korea Aggressive Allocation and Korea Cautious Allocation in Korea. The Morningstar Korea Fund Awards look at the country’s specific offerings, but the methodology applied is the same.  

There are two types of Morningstar Fund Award: there is the Morningstar Category Awards and the Morningstar Fund House Awards.
Morningstar Category Awards are awards given to the funds with the best risk-adjusted performance within their Morningstar Categories or groupings of Morningstar categories, subject to a
qualitative review. Morningstar Fund House Awards are given to the fund groups with the strongest performing fund line-ups on a risk-adjusted basis. Fund performance is evaluated within the Morningstar categories. The awards are determined for each individual national fund market, but the approach is the same across Asia, regardless of which country is concerned. Winners Korea new   MALAYSIA
Malaysia is the largest market in Asia for Islamic finance, and the Morningstar Malaysia Fund Awards feature categories that take these preferences into consideration by adding specific fund categories that reward fund houses that provide Islamic funds. 

In malaysia there are three  fund categories that are unique: Islamic Malaysia Equity Fund, Islamic MYR Bond Fund and Islamic MYR Allocation fund. 
These fund categories sit alongside the traditional investments in the equity, fixed interest and allocation categories. Asia is a diverse market and the offerings vary significantly from country to country. Malaysia is the largest market for Islamic finance and the Morningstar Malaysia Fund Awards recognise this with fund categories that reward the providers of Islamic funds. Morningstar expanded into Asia in 2000 and has grown its businesses into countries, such as Japan, Korea, India, China, Taiwan, Singapore, Malaysia, Thailand and Hong Kong over the recent years. The operations in Asia not only offer timely information on mutual funds, but also insightful and independent analyses and unbiased fund ratings. They also offer sophisticated analytical tools to help both individual and professional investors make better investment decisions.  Winners Malaysia THAILAND
The Morningstar Thailand Fund Awards feature both local and international players.
Winners Thailand ©2014 funds flobal asia

Sponsored Profiles

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Sponsored profile: Bridging the gap

Mar 11, 2019

Private equity is a core part of the business for Caceis’ Hong Kong office, which looks after clients in China and Europe. David Li, chief executive officer, explains why private equity enjoys strong client demand and how it is being used to fund China’s international infrastructure ambitions.

SPONSORED FEATURE: Market knowledge key to fund distribution in Asia

Jan 11, 2019

The highly fragmented investment markets in the Asia-Pacific region require detailed knowledge of each market’s unique characteristics and framework. By Lou Kiesch, Partner, and Marc Noirhomme, Director, at Deloitte Luxembourg.

Executive Interviews

Executive interview: Timing the market

Oct 17, 2019

Amy Cho, Schroders’ Hong Kong chief executive and regional head of intermediary clients, tells Romil Patel about Hongkongers’ love of investing, staying nimble in a volatile market and following...

Interview: Asia’s sweet spots

Jul 05, 2019

As the US-China trade war ramps up with a hike in levies, Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management, tells Romil Patel where he identifies investment value.


Singapore roundtable: A horizon to hold long-term assets

Jan 12, 2020

Panellists discuss the geopolitical fractures concerning asset owners, Singapore as a hub for fintech start-ups and why it makes sense to raise capital from a Variable Capital Company (VCC). Chaired by Romil Patel in Singapore.

Roundtable: Priming for Asia’s growth

Oct 17, 2019

Panellists discuss expanding product capability across Asia-Pacific, the opportunities and regulatory challenges around data and the prospects for ETFs in the region. Chaired by Romil Patel in Hong Kong.