Quantitative judging process - Performance screening criteria
A weighted score was given to each fund's percentile ranking within its sector over each of the three discrete years to 31 December 2019.
There is a 20% weighting to the percentile ranking during the 12 months to 31 December 2017, 30% to 31 December 2018, and 40% to the period to 31 December 2019. In addition, a 10% weighting was given to the fund's Sortino ratio to give an indication of relative risk. Any fund with assets of less than £50m as of 31 December 2019 were stripped out; where the manager has a record of less than three years on that portfolio; or if the fund is aimed only at institutional or charities investors.
The funds covered are UK authorised and FCA-recognised with distributor status.
With special thanks to our event partner Morningstar for providing the data and statistics.
Qualitative judging process
Managers of the shortlisted funds are then invited to respond to an online questionnaire which asks further in-depth questions about the portfolio and contributing factors to performance over the period to help the judges in their deliberations.
This year we are asking more specific questions about risk management, managing capacity and portfolio liquidity to reflect the concerns of Investment Week readers.
For the first time this year, we are also asking explicitly about sustainability and ESG factors in this questionnaire to help the judges with their qualitative deliberations.
Our panel of highly experienced fund selectors drawn from across the industry will then judge each category in their area of expertise during our judging sessions held over two days in May.