The awards recognise funds and asset managers who have done a good job for investors in recent years and are funds the Morningstar manager research team believes will be able to deliver strong, risk-adjusted returns in the longer term.

The three types of Morningstar award are: the Morningstar Category Awards, the Morningstar Asset Manager Awards and the Morningstar Asset Manager Sustainable-Investing Awards.

Among the winners this year were Fidelity, Vanguard, Royal London, Fundsmith and Threadneedle.

The 2022 Morningstar Awards for Investing Excellence award winners in the UK:

Source: Morningstar

The Morningstar Asset Manager Award went to Capital Group for its multimanager system. By dividing each fund into independently run ‘sleeves’ managers invest in line with their styles, enhancing diversification and reducing the overall portfolio's volatility. 

Jonathan Miller, director, manager research ratings, UK, said: “The funds' analyst-led research portfolios help develop the next generation and recruit top talent with the promise of running money from the start. The result is an investment culture marked by lengthy tenures, strong manager fund ownership, and competitive long-term records.” 

The Morningstar Asset Manager Sustainable-Investing Award went to Impax for being a “leader in sustainable investing” since the firm’s foundation in 1998. The firm was praised for ensuring ESG considerations are incorporated at every stage of the investment process. 

Mr Miller said: “Impax’s commitment to sustainable investing also shines through its people. True to its DNA, the firm has also exemplified strong active ownership practices.”

The awards were determined by a combination of risk-adjusted medium- to long-term performance track records and Morningstar’s forward-looking rating for funds, the Morningstar Analyst Rating, complemented by the Morningstar Quantitative Rating (MQR). The MQR is a quantitative rating that seeks to emulate the Analyst Rating and uses the same Gold, Silver, Bronze, Neutral, Negative scale as the former. 

Mr Miller said: “The objective of the Morningstar Awards for Investing Excellence is to highlight funds and fund groups that have done a great job for investors and that we think should continue to serve them well in the long run. Our 2022 winners, across equity, fixed-income and multi-asset categories, have been carefully chosen by our analysts and represent some of the best funds and fund groups in the industry. The winner of our newly introduced Asset Manager – Sustainable Investing Award has one of the best ESG programmes in the industry and has built it into its investment DNA.”