Group category methodology

The Fund Manager of the Year Awards program, in conjunction with event stakeholders Money Management, Momentum Media and Lonsec, has developed a robust awards methodology to form the backbone for assessing and benchmarking Australia’s leading finance professionals.

The judging criteria for award categories is both quantitative and qualitative, acknowledging growth, business development, diversity, leadership, innovation, business excellence and contribution to Australia’s financial sector.

01.

Active Funds

Within each category, the pool of eligible funds is the Lonsec-rated universe. This universe is then screened according to funds that have met the following criteria:

Has received a Lonsec Recommended or above rating for each of the last three years
Has met at least two of the following:
- Met or exceeded investment objectives
- Delivered alpha above that of peers
- Delivered defensive characteristics above peers

This screening process ensures only funds where Lonsec has high conviction in the capability of the fund manager and their team are eligible for the award. The quantitative screening characteristics can then be applied.
A shortlist of finalists is then selected from this group.

02.

Passive Funds

Eligibility for the Passives Award is similar to that of the Active categories. The starting pool of eligible funds is the Lonsec-rated universe. This universe is then screened according to funds that have met the following criteria:

Has received a Lonsec Recommended or above rating for each of the last three years
Has met at least two of the following:
- FUM above $100m*
- Fees in line with or lower than peer and spreads in line with or lower than peers
- Tracking difference is <50 bps

*Applicable to ETFs only

Once the eligible universe has been defined, a shortlist for the award is compiled.

03.

Emerging Manager

An emerging manager is defined as a manager with a track record of less than five years in the Australian intermediated market. The manager must have at least one product with a recommended rating. The Lonsec sector managers vote on this category.

Innovation Award:
Both passive and active funds are eligible to win the Innovation Award. Eligibility criteria are:

The product is differentiated
It has been brought to market within last one to three years
Has a Lonsec investable rating of Investment Grade or higher

Lonsec sector managers vote on this award.

04.

Innovation Award

Both passive and active funds are eligible to win the Innovation Award. Eligibility criteria are:

The product is differentiated
It has been brought to market within last one to three years
Has a Lonsec investable rating of Investment Grade or higher

Lonsec sector managers vote on this award.

05.

Manager of the Year

Manager of the Year is a manager that has demonstrated a sound investment culture and good governance practices across at least one investment cycle and across a number of asset classes.

Managers are nominated by Lonsec sector managers and that group votes to determine the winner.