Home / News / Morningstar award winners announced

Morningstar award winners announced

News

Mark Arnold and Jason Orthman stood at the podium to collect three awards at last Friday (Feb 26) afternoon’s annual Morningstar funds awards, including the main prize, that of Fund Manager of the Year.

  • But they didn’t quite scoop the pool. They were on stage four times but had to make way for T. Rowe Price in the best global equities manager category. Arnold, Hyperion Asset Management’s CIO, said afterwards that he thought his team had been a good chance to get the global award too, given very strong performance last year.

    Nevertheless, the pair – Arnold and deputy CIO Orthman – had good reason to be happy, as did their clients. Performance played a big part in their awards, which Arnold mentioned each time he was handed the microphone.

    Accepting the first award, for Australian equities large-caps, Arnold said the flagship fund was the Brisbane-based boutique’s first product, launched 25 years ago. It had a return of 33 per cent in 2020 and had averaged 4.6 per cent annual outperformance.

    Accepting the second award, for Australian equities small-caps, Arnold said the fund had had a compound rate of return such that money invested ten years ago would now be worth four-and-a-half times its value.

    “It’s a special product we started 19 years ago and has been a 19-bagger after fees. It’s had outperformance of about 8 per cent a year after fees,” he said.

    He didn’t get to speak while on stage for the third award, for global equities. T. Rowe Price won that from runners-up Hyperion and Franklin Templeton. T. Rowe also won the same Morningstar award in New Zealand’s virtual version of the show the night before.

    With the Australian Fund Manager of the Year award, Aman Ramrakha, Morningstar’s director of manager research ratings, said that this year there was more consensus in the judging on the ultimate winner. The runners-up there were First Sentier Investors and Franklin Templeton, both of whom also had strong performance.

    At the mic for the last time, Arnold said that almost half of Hyperion’s total funds under management had come from alpha generated, after fees, by the manager’s strategies over the past 25 years.

    The Morningstar awards methodology uses a mix of qualitative research, risk-adjusted medium-to-long-term performance and performance in the 2020 calendar year. The other winners are:

    • Undiscovered manager: Atlas Infrastructure

    • Fixed interest: Legg Mason Western Asset

    • Global equities: T. Rowe Price

    • Listed property and infrastructure: Ironbark Paladin Property Securities, and

    • Multi-sector manager: Vanguard Investments.

    • Fund Manager of the Year: Hyperion.

    The Western Asset award for fixed interest was not a surprise, going to a previous recipient, which is now a part of the Franklin Templeton stable of managers following its global purchase of Legg Mason. Morningstar said Western Asset was impressive in both Australian and global bonds. It also took out the award in NZ on Thursday.

    “Now under new ownership, Western Asset’s large team of fixed income specialists continue to show remarkable stewardship,” Ramrakha said.

    Atlas Infrastructure has had strong growth in the institutional investor space for its listed infrastructure style, even though the institutional market tends to prefer unlisted infrastructure, because of the greater control such investments offer investors.

    Morningstar said Atlas was “worthy of attention from retail investors.” The manager had an experienced team spread between London and Sydney which formed the bedrock of “this promising strategy,” Morningstar said.

    Greg Bright

    Greg has worked in financial services-related media for more than 30 years. He is a former economics writer for the Sydney Morning Herald and assistant editor and business editor for the Australian Financial Review. Greg has founded many magazines, newsletters and conferences in the funds management industry. Titles he has launched include: Super Review, Investor Daily, IFA, Investor Weekly, Investor Supermarket, SMSF Magazine, the Blue Book, Investment Magazine, I&T News, Professional Planner, Top1000Funds.com, IO&C News, Investor Strategy News and New Investor.




    Print Article

    Related
    Online investment dives as novice investors shy away from platforms

    The continuing decline in online investment can be traced back to a few developments, but it must also sit alongside a reminder that usage peaked dramatically in the pandemic.

    Staff Writer | 8th Feb 2024 | More
    CFS and The Inside Network align for adviser-focused insiders community

    Commenting on its multi-year partnership with The Inside Network, CFS distribution lead Bryce Quirk called the insiders community an “ideal vehicle” to deliver its core values, which hinge on servicing financial advisers and their clients.

    Staff Writer | 12th Dec 2023 | More
    Morningstar invested in nuclear weapons components against ESG claims: ASIC

    The five holdings were only for about two weeks each, and then divested as soon as Morningstar became aware of them. But ASIC takes a seriously dim view of ESG claims that don’t match reality these days.

    Tahn Sharpe | 1st Dec 2023 | More
    Popular
  • Popular posts: