NEW YORK, Oct. 4 /PRNewswire/ -- Standard & Poor's today announced the 29 finalists in its US Mutual Fund Excellence Awards Program. The funds were selected as having most consistently achieved the highest overall quantitative ranking in their category using S&P's proprietary, holdings-based research during the year ended August 31, 2010.
The finalists are:
Finalists (listed alphabetically)
Domestic Equity Large Cap
Blended Individual Securities
Taxable Fixed Income
Domestic Equity Small Cap
New and Notable
Domestic Equity Mid Cap
Domestic Equity Multi Cap
Blended Funds of Funds
"The application of our methodology has produced some surprising results," said Todd Rosenbluth, mutual fund analyst at S&P. "To be a finalist, a fund had to do more than just outperform its peer group during the period we measured. This is a reflection of the quantitative S&P methodology, which also gives weight to non-performance factors, including the quality of holdings, manager tenure, risk, and cost factors, and has a reduced reliance on backward-looking performance data.
"In the final analysis, a number of major fund families are well represented here, but there are also some funds from groups that are less well known," Rosenbluth said.
In addition to the nine asset class finalists, the S&P US Mutual Fund Excellence Awards program includes three finalists in a "New and Notable" category. This category takes advantage of S&P's ability to rank funds with a less than three-year track record, which limits the ranking of these funds to an S&P three star.
"New funds are an important part of the mutual fund landscape, and one that we believe deserves recognition," said Stephen Biggar, Managing Director, Global Equity Research at Standard & Poor's. "This category of our awards program recognizes funds that, despite a short track record, have favorable cost factors and that recently held stocks that are currently viewed positively by S&P Equity Research."
The Gold, Silver, and Bronze award recipients in each category will be announced during a live video broadcast from the offices of Standard & Poor's in early November.
The S&P Research Process
S&P introduced its holistic mutual fund research methodology in September 2009. The approach incorporates bottom-up research about a fund's underlying stock, bond and mutual fund holdings as well as its performance, risk, and cost factors to relatively rank approximately 19,000 mutual funds on a scale of one star (lowest) to five star (highest). The quantitative methodology goes well beyond the fund industry's traditional approach to rankings, which tends to be based on a historical-looking assessment of risk adjusted past returns, with S&P's approach bringing a broad range of proprietary tools into the analytical methodology, including S&P STARS research, S&P Credit Ratings, S&P Fair Value and S&P Quality Rankings along with fund level inputs such as manager tenure and expense ratio.
S&P makes its mutual fund research available through its MarketScope® Advisor (MSA) platform, a leading source for multi-asset class research, rankings, and allocation strategies. MSA is now used by more than 80,000 financial advisors.
About the Standard & Poor's Equity Research Mutual Fund Excellence Awards
The S&P Equity Research Mutual Fund Excellence Awards is an annual awards program designed to recognize those US mutual funds that have achieved the highest overall ranking in their category on the most consistent basis during the previous measurement year based on S&P's proprietary, quantitative research methodology. Among the factors the research process seeks to identify are consistently strong performance, high quality holdings as measured by S&P STARS equity research, S&P Credit Ratings and S&P Quality Ranks, and favorable cost factors.
Additional information about the awards program, the selection methodology, and the award recipients is available at www.spfundawards.com. The website will be updated regularly with additional content.
About Standard & Poor's Equity Research Services
As the world's largest producer of independent equity research, Standard & Poor's licenses its research to global institutions for their investors and advisors. Standard & Poor's team of experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of multi-asset class securities across industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at www.equityresearch.standardandpoors.com.
The mutual fund rankings and/or equity research and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade for its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at www.standardandpoors.com or by visiting www.spfundawards.com/?elqPURLPage=568.
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