LIPPER AWARDS-2014 U.S. Lipper Fund Awards highlight steady leaders

Fri Mar 21, 2014 12:01am EDT
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By Sam Forgione

NEW YORK, March 21 (Reuters) - As the broader market shifted between fear and exuberance, the winners of the 2014 U.S. Lipper Fund Awards managed to strike a balance and delivered consistent returns.

Trophies were handed out to the managers of the 37 top-performing mutual funds for the past three years ended Nov. 30 that faced stretches of market turbulence. They contended with a bond market selloff, a sharp rise in stocks following the U.S. Federal Reserve's easy money policies, a rout in emerging market assets, unprecedented stimulus from the Bank of Japan and a partial shutdown of the U.S. government.

In this 12th year of the awards, Lipper, a unit of Thomson Reuters Corp , Lipper recognized 107 fund families. The awards were officially presented in New York City on March 20.

In a conversation with Reuters, Tom Roseen, Lipper's head of research services in Denver, and Jeff Tjornehoj, Lipper's head of Americas research, explained how the awards can help investors recognize the rare fund that performs well over time.

Q: What is the most important factor for picking winning funds or firms?

Roseen: We don't need to have the best performance. The best performance can add that extra risk that you and I are perhaps not willing to absorb. It's not only consistent or persistent performance, but consistent over long periods of time.

Tjornehoj: No one is a favorite here. We don't send this through a jury. This is done strictly based on our model for producing the best consistent return over three, five, and 10 years. The consistency is critical.

Q: Was there a common trait among this year's trophy winners?   Continued...