This article was originally published in GoodReturns and has been reproduced in its entirety here.
https://www.goodreturns.co.nz/article/976507067/picking-winners.html
For a more in-depth look at the FundSource Fund Manager of the Year Awards and how winners decided, we have Chief Judge, Darren Howlin in the Good Returns TV studio to explain the process.
Wednesday, September 12th 2018, 9:41AM
Howlin says this year has really been a year of active funds management when it comes to analysing why particular firms won awards. He says that’s the case across equities and fixed interest.
Nikko AM, which took out the overall award had strong performance and its security selection had definitely helped.
This has certainly been the case in the New Zealand market where the performance of a number of stocks, including A2 Milk, Xero and CBL have had significant bearing on fund performance.
Howlin says when it comes to fixed interest duration calls and security selection were important factors.
The awards process isn’t just about one-year performance, he says. Other criteria such as volatility adjusted sharpe ratios, distribution and the strength of support on the ground also count.
“We’re very cognisant we don’t one hit wonders coming through,” he says. “It’s not just about a one-year sugar hit.”
Two perennial winner have been Milford Asset Management which has taken out the KiwiSaver manager of the year award consecutively since 2016 and Harbour Asset Management which has retained the Australasian Equities Awards.
Howlin says continues to generate “good strong solid outcomes for investors” across all its funds and for Harbour security selection has been critical.
EARLIER STORY: Nikko claims top award [+ VIDEO]