Why the industry needs awards

Yesterday saw the 16th annual Investment Week Fund Manager of the Year Awards, with the normal array of plaudits and criticisms that go with such events.

What value do awards ceremonies play in the industry, and can they be trusted by advisers and consumers? There are legitimate and relevant questions, which often come with a veiled cynicism, that they are worthless and driven by commercial considerations. The same criticisms are often levelled equally at the fund ratings agencies, so it is sensible to answer these questions at the same time. The FMYAs use a judging process based on both quantitative and qualitative analysis, inspired by a methodology originally used by Fund Research, long before it was owned by Standard & Poor’s. Fund...