How many of us have come across "Lipper Fund Award" when approached by Unit Trust Agents? Like my Facebook page if you have! Be it Public Mutual Agents, MAAKL Agents, CIMB Wealth Advisors or any other fund agents, the term Lipper Award will surface whenever the conversation is about investing in unit trust. In fact, I'm sure you've also come across "Lipper Fund Awards" in various Unit Trust websites such as CIMB's "We're the best" banner:
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| The new leader in Unit Trust Invesment! |
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| AMB...best Equity Malaysia Fund! |
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| 10 awards in 2010 and only 6 awards in 2012...hhmmm |
Similar to the Oscars and Grammys, Lipper Awards are given in recognition of outstanding performance by a unit trust fund or a unit trust company. The problem is that almost every single unit trust company has a Lipper Award to boast about. Some have 10 awards...hint hint. The term Lipper Award has been abused used so often that I find it difficult to differentiate the different types of award. This brings me to today's post about dissecting the meaning of Lipper Award and to differentiate the different awards given out.
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| Many award winners can be purchase from eUnittrust! |
Facts About Lipper Fund Awards
- The Lipper Fund Awards is held to honor the best funds and fund houses.
- It is held once every year, normally between Jan - April of each year. The 2013 Lipper Fund Awards for Malaysia will be held on the 25th February 2013.
- Since there are about 600+ funds in circulation with different nature of investment and risk profile, the Lipper Award has to cater these differences by offering 35 different award categories (expecting more categories in the future such as best PRS fund). Now you know why there are so many different types of Lipper Awards.
- Award winners are selected based on the criteria available HERE. Generally to select a winner for a particular category,the effective returns of a fund over a certain period is taken into consideration. The highest effective returns among the competing funds will be judged as winner.*
*I'm generalizing the criteria for selecting an award winner. Detailed explanation can be found in the link above.
Winners for 2012 Lipper Fund Awards
Apart from providing the list of award winners for 2012, I have also added:
1. A personal rating on how important that particular award is in helping you to decide the best fund to invest in for long term.
2. The winning fund latest performance based on annualized returns. That way, you can see that not all funds will produce positive returns and/or produce higher then EPF's 5.5% average annual returns.
Category : GROUP (by Fund House)
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Classification
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Importance
factor when considering to invest long term
(LOW,
MEDIUM & HIGH)
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2012
Winner
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Current
Performance of Fund Winner based on Annualized Returns
(as
of 24th Jan 2012 unless stated)
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Bond
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LOW
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Am Investment
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N/A
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Equity
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LOW
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Pacific Mutual
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N/A
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Mixed Assets
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LOW
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MAAKL
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N/A
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Overall
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LOW
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CIMB
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N/A
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Category : 3 YEAR (by Fund)
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Bond Malaysian Ringgit
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MEDIUM
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AmDynamic Bond
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+8.61%
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Equity Asia Pacific
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MEDIUM
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Public Asia Ittikal
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+3.17% *
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Equity Asia Pacific Ex Japan
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MEDIUM
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CIMB Islamic Equity
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-1.84% **
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Equity Global
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MEDIUM
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Pacific Dana Dividen
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+3.51% *
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Equity Malaysia
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MEDIUM
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CIMB Principal Equity
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+11.98%
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Equity Malaysia Small & Mid Caps
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MEDIUM
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Public Focus Select
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+14.32%
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Mixed Asset MYR Bal - Global
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MEDIUM
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PB Asia Real Estate Income
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+11.28% (as of 31 Oct 2012)
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Mixed Asset MYR Bal - Malaysia
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MEDIUM
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Hwang Select Balanced
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+12.43%
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Mixed Asset MYR Conservative
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MEDIUM
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Hwang Select Income
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+11.68% (as of 30 June 2012)
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Mixed Asset MYR Flexible
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MEDIUM
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MAAKL-HDBS Flexi
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+16.20%
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Category : 5 YEAR (by Fund)
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Bond Malaysian Ringgit
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HIGH
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AmDynamic Bond
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+8.56%
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Equity Asia Pacific Ex Japan
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HIGH
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Pheim Asia Ex-Japan Islamic
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+0.72% *
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Equity Global
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HIGH
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Pacific Focus 18
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-1.96% **
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Equity Malaysia
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HIGH
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AMB Value Trust
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+11.06%
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Equity Malaysia Small & Mid Caps
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HIGH
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Public Small Cap
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+12.81% (as of 31 Aug 2012)
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Mixed Asset MYR Bal - Malaysia
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HIGH
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Apex Dana Al-Faiz-I
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No info
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Mixed Asset MYR Conservative
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HIGH
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Hwang Select Income
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+7.06% (as of 30 June 2012)
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Mixed Asset MYR Flexible
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HIGH
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PRUdana dinamik
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+7.05% (as of 30 Sept 2012)
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Category : 10 YEAR (by Fund)
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Bond Malaysian Ringgit
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HIGH
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Public Islamic Bond
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No info
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Equity Malaysia
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HIGH
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CIMB-Principal Equity
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+12.04% (as of 30 June 2012)
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Equity Malaysia Small & Mid Caps
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HIGH
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Public Small Cap
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No info
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Mixed Asset MYR Bal - Malaysia
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HIGH
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OSK-UOB Kid Save
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+11.93%
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Islamic : 3 YEAR (by Fund)
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Bond Malaysian Ringgit
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MEDIUM
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PB Islamic Bond
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+8.6%
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Equity Asia Pacific Ex Japan
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MEDIUM
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CIMB Islamic Equity
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-1.84% **
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Equity Malaysia
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MEDIUM
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Kenanga Syariah Growth
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+18.09%
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Mixed Asset MYR Bal - Malaysia
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MEDIUM
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CIMB Islamic Balanced Growth
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+14.25% (as of 30 June 2012)
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Islamic : 5 YEAR (by Fund)
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Bond Malaysian Ringgit
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HIGH
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PB Islamic Bond
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+7.24%
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Equity Malaysia
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HIGH
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Kenanga Syariah Growth
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+11.01%
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Mixed Asset MYR Bal - Malaysia
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HIGH
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Apex Dana Al-Faiz-I
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No info
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Islamic : 10 YEAR (by Fund)
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Equity Malaysia
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HIGH
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Pacific Dana Aman
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No info
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Mixed Asset MYR Bal - Malaysia
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HIGH
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CIMB Islamic Balanced
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+6.68% (as of 30 Sept 2012)
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* Fund Performance below EPF average annual returns of 5.5%
** Negative returns for Fund Performance
My views
As you can see, not all award winning unit trust fund generate positive income. To be honest, any fund that performs below the EPF average return of 5.5% is not worth investing for the long term. Surprisingly lower risk fund such as OSK-UOB Kid Save fund is returning double digits profits over a span of 10 years.This fund in particular is definitely worth considering especially if you're saving up for your kid's education. Purchase OSK-UOB Kid Save from eUnittrust at only 2% sales charge.
For higher risk investment, I'm seriously considering Malaysia Equity funds such as Public Small Cap, AMB Value Trust and Kenanga Syariah Growth. All three are on my watchlist.
For investors approaching retirement, low risk bond fund such as PB Islamic Bond should be the best choice for investment. Unfortunately, investor can no more purchase AmDynamic Bond as the fund size has already maxed out.
Summary
By writing and researching on Lipper Fund Award, I've gained another new tool to help me decide on the best fund to invest in. I've also realized that despite the high service charge, some of the award winning funds are worth investing as well. With the 2013 Lipper Fund Award just around the corner, I'm expecting a few award winners to be toppled by rival funds. Coupled with the impending General Election, unit price for various high risk funds would most likely drop thereby offering investors and myself an opportunity to purchase more units at lower price.
Till then, I wish all of you a fantastic long weekend break!
Cheer and Happy Investing!
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