The Fund Manager of the Year Awards 2014/15 are based on a two-step process.
The first step involves a quantitative screening, done with the assistance of Lipper, a Thomson Reuters company, to identify the shortlisted funds per Awards category. The second, qualitative step involves 10 fund selectors from across Europe picking out their preferences from the shortlists, to identify the winning funds.
The fund and fund manager together must have a three year track record to 31 May 2014, to measure cumulative return.
Performance is assessed over each year discretely, and then weighted the following way:
30% weighted to performance in the last 12 months (Year 3)
40% weighted to performance in Year 2
20% weighted to performance in Year 1
10% weighted according to the three year Sortino Ratio.
The higher weighting toward Year 2 takes into account the mean reversion risk as more money tends to come into funds as they pass into a three-year-plus track record.
The weighted calculation gives the fund an aggregate score out of 100, which will determine its position in the category rankings.
Additionally, the fund must be of a minimum size of €100m, and it must be for sale in at least two (2) of InvestmentEurope’s core markets: France, Germany, Iberia (Spain and Portugal), Italy, Scandinavia (Norway, Sweden, Denmark, Finland), and Switzerland.
The quantitative screen will be used to identify up to 7 funds in each category, which will make up the shortlist in the following categories:
Emerging Market Debt
Global Emerging Markets
Additionally there are two categories that are not shortlisted through the initial quants screening, which are Specialist Group of the Year, and Investment Group of the Year.
The shortlists will be forwarded to InvestmentEurope’s judging panel of 10 fund selectors from across Europe. They will use a secure web link to vote individually and confidentially, ranking candidates and adding comments which may be used for winner’s citations.