How Morningstar Picks Fund Managers of the Year
Beyond just last year's numbers, we look for long-term stewardship and solid risk-adjusted returns.
Russ Kinnel: On Jan. 21, we'll be announcing our Manager of the Year winner, so I thought I'd take a moment to talk about what we look for when we choose Manager of the Year. Although it's called Manager of the Year, we really look at long-term performance. We want managers who have done a good job for a lot of shareholders over a long period of time. We care about risk-adjusted returns. We also care about stewardship because there are a lot of important decisions over the course of a fund's existence, say 10 or 15 years, in which stewardship plays an important role.
We often get the question “Why do you consider closed funds as part of the Manager of the Year awards?” And that’s because it's not meant to be a buy list; it's recognition of great service for investors. If you are looking for a buy list, you can screen [Morningstar Medalists] that are still open to new investors.