Investment Week's judging panel has drawn up short lists for nine of the 11 award categories for its...
Investment Week's judging panel has drawn up short lists for nine of the 11 award categories for its forthcoming investment trust awards ceremony.
It has put together a list of six contenders for the Group of the Year award consisting of Baillie Gifford, Close Finsbury, Fidelity, Flemings, Friends Ivory & Sime and Henderson Investors. The winner of this and the 10 other awards will be unveiled at an evening awards ceremony to be held on Wednesday 22 November at the Savoy Hotel, with sponsorship provided by the AITC. This will follow an afternoon Investment Week Investment Trust Markets Forum, which will be held at Bloomberg's offices in Finsbury Square, London. This will be for a select audience of 150 intermediaries.
The panel consists of four leading buyers of investment trusts who helped with the judging on last year's awards: Derek Larcombe at Quilters, Robert Ottley of HSBC, Bob Clarke from Rathbones and Phil Case of Coutts & Co. They are joined by Investment Week editor Mark Colegate.
As with last year's awards, the panel is using statistics provided by the AITC. This year's categories are slightly different to those used in 1999, the first standalone investment trust awards ceremony held by Investment Week. As with last year there is to be group of the year, Split Cap, UK Income, UK Growth, Emerging Markets and European awards.
In 1999 there was a global and a US category but this year the two have been merged, reflecting the lack of US portfolios in the industry but recognising the strong pull the North American market has on the global economy. As a result of the wide range of sectors this encompasses, the panel has decided to short list 10 trusts although in all other awards the maximum short list is six.
In 1999 the award for UK smaller companies did not include venture and development capital trusts although this year the latter has been added. This year also sees the inclusion of two new specialist awards for outstanding achievement. The first of these is to reward a fund manager for his or her contribution to producing high and consistent returns. The second is to reward a trust or investment group for its innovative use of structure either in restructuring or launching a product to the benefit of the market and shareholders. The panel is still choosing the short list for these two awards.
The panel has run an initial quants screen to draw up its short list for the awards categories. Using NAV rather than share price information up to 31 July 2000 the bottom 50% of trusts in each AITC sector over the 12 months to 31 July will be stripped out. To be considered, trusts must have at least a three year track record and an NAV above £25m as of 31 July 2000.
Of those that remain, each one will be given an overall total by giving a 45% weighting to their most recent discrete yearly performance, a 35% weighting to the previous year and a 20% weighting to the 12 months prior to this. This will give each trust a single weighted figure for absolute performance. The aim of this figure is to give a bias towards more recent returns and performance trends while not ignoring the three year track record.
Discrete rather than total return figures have been used so as to make any volatility in returns more evident as the panel is aiming to reward consistent outperformance.
This process will be used as the basis for drawing up the short list for all awards except for group of the year and the two specialist awards. In the case of the split cap category the panel will look at the underlying portfolio performance rather than the NAV returns generated by individual share classes. The structure of the split caps will then be considered among those that make it onto the short list.
For the Group of the Year award, the panel considered any investment house which has management contracts for at least three investment trusts.
The panel will use a purely qualitative judgement in picking winners for the two specialist categories for outstanding achievements although it will take into account the quants screening in coming to its decisions.
Now the short list has been picked the panel will send out award questionnaires to those chosen. The answers supplied will then be used to judge the winner in each category.
For further information
contact Sophie Radnor on
020 7432 6922 or
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