Recognising top players

BNZ Investment Management has won top place in the Morningstar/Business Herald Fund Manager of the Year awards.

Other finalists for the title of Fund Manager of the Year 2002 were ANZ Investment Services and ING.

The winners are chosen by Morningstar, a company which researches managed funds. It says the awards recognise retail funds management excellence during the year.

As well as the overall award, there are seven sector awards, including a new one for the best Manager of Mortgage Funds (for sector winners, see below).

Morningstar said BNZ achieved a strong performance across several sectors, winning both the International Equities and Fixed Interest categories and being a finalist in the New Zealand Fixed Interest, New Zealand/Australian equities and Mortgages sectors.

Morningstar said BNZ's investment management team, which has been stable for several years, adds value by combining original analytical research with excellent risk management systems and disciplines. BNZ's style of equities management is biased towards value and other sectors are managed with clearly defined parameters.

Eleven fund managers are eligible for the awards, which are limited to superannuation and unit trust managers based in New Zealand, and which are rated by Morningstar.

"Index" or "passive" funds are not eligible.

The awards combine a quantitative and qualitative assessment, with the points allocated for each category added together to find the overall winner.

The quantitative assessment is based on the returns achieved by the fund manager relative to the returns of other managers and takes into account the risks associated with those returns.

The qualitative assessment includes a review of the investment management team, their disciplines, procedures and administration systems and the corporate strength of the fund manager.

Investors should keep in mind that the awards cover only a portion of the many managed investment choices.

As already noted, they exclude index funds and overseas-based managers, both of which can offer worthwhile tax advantages over their New Zealand counterparts.

www.morningstar.net.nz