InvestTalk

The US based fund rating company, Morningstar Inc is a leading provider of independent investment research in the United States and in major international markets. This time they have conducted a research on our local funds, Public Mutual has swept four out of six awards given by Morningstar.

Picked from www.thestar.com:

“Public Mutual picked up the awards for its Public Ittikal Fund and Malaysian Equity Public Growth Fund under the Equity cateogry. Its Public Bond Fund and PB Balanced Fund also won in the fixed income and balanced category.

The other winners are MAAKL’s Progress Fund under the Malaysia Small Cap Equity and CIMB’s Islamic Balanced Fund.”

One of my investors asked me today when I sent him this article. “How does it related to me or my investment if Public Mutual got awards?” Then I realized that someone somewhere out there may not know how importance are these awards and how does the awards distinguish this fund from another fund. While I do not suggest that we use these awards as a “buying signal”, I don’t deny that the funds that have received awards indicate that they have been performing well and have been managed well by the fund managers. These funds normally have delivered good results to investors and has a good long term track record. Funds that have been there for a few years and still performing consistently normally will be chosen.

So in the end does the award matters? I would say it’s still early to decide that it’s a “buying signal” though but it definitely helps in assisting you in evaluating your fund’s company and their fund managers’ performances. Therefore, you should be happy to see it.