TORONTO, Jan. 31, 2017 /CNW/ -- Morningstar Research, Inc., a Canadian subsidiary of Morningstar, Inc. (NASDAQ: MORN), a leading provider of independent investment research, today announced the 2016 Canadian Fund Manager of the Year award winners. The analyst-driven Fund Manager of the Year awards recognize managers who delivered impressive performance in 2016, have generated excellent long-term risk-adjusted returns, and have been good stewards of fund shareholders' capital.
To recognize outstanding fund managers, Morningstar analysts selected leaders in equity, fixed income, and stewardship.
"The past year included a revival in Canadian stocks, political upheaval in Europe and the United States, and expectations for rising inflation and interest rates. All of the nominees for the 2016 Morningstar Canadian Fund Manager of the Year awards demonstrated skill in navigating this uncertain environment, while sticking to their long-term fundamentals," Christopher Davis, manager research strategist for Morningstar Research, said. "These fund managers deserve recognition for their ability to deliver impressive returns in both 2016 and over the long term, while continuing to put shareholders' interests first."
The 2016 Fund Manager of the Year award winners in Canada are:
Equity Fund Manager of the Year: Stephen Arpin and William Otton, Beutel Goodman Small Cap
Stephen Arpin and William Otton stood out with consistent performance that has delivered nearly double the return of their peers over the last two years. They built a portfolio resilient enough to weather 2015's lousy environment for Canadian small caps, but with enough fortitude to outpace in 2016. Their 21 percent return last year wasn't as strong as more commodities-heavy rivals, but it still ranked in the top third of the Canadian small/mid-cap category. Arpin and Otton were also the only category finalists to have turned in peer-beating performances in both 2015 and 2016.
Fixed-Income Fund Manager of the Year: Hanif Mamdani, PH&N High Yield Bond
In late 2015, Hanif Mamdani considered Canadian high-yield energy bonds, which had taken a drubbing from sinking energy prices, to be a very attractive opportunity. Reflecting his contrarian ethos, in early 2016 the fund briefly took in new money to add a stake in depressed energy and basic materials issuers and closed shortly after reaching its asset target. Judging by the results in 2016, this was the right call: The fund rose 17 percent for the year, almost twice the high-yield fixed-income category average.
Steward of the Year: RBC Global Asset Management
As Canada's largest asset manager, RBC Global Asset Management has long been the industry cost leader, and in 2016 RBC sliced expenses broadly across 85 funds. Amid increased competition and scrutiny around fees, this award recognizes RBC for passing along the benefits of growing economies of scale to fundholders. Morningstar research has found a strong relationship between costs and investment performance, with lower fees improving investors' odds of success. By lowering fees, RBC's heft raises the bar for its competitors to do the same.
For articles about the Morningstar Canadian Fund Manager of the Year award winners, visit www.morningstar.ca, or follow on Twitter through the hashtag #MstarAwardsCA.
About Morningstar Research, Inc. and Morningstar, Inc.
Morningstar Research, Inc. is a Canadian subsidiary of Chicago-based Morningstar, Inc., a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on nearly 540,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on approximately 18.5 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than US$200 billion in assets under advisement or management as of Sept. 30, 2016. The company has operations in 27 countries.
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