In November 2017 the Affluence Investment Fund celebrated its 3-year anniversary. This also meant the Fund was eligible for a Morningstar “star” Rating. In December 2017, the Fund received its first Morningstar Rating, and achieved the highest result possible, with an overall 5 Star Morningstar Rating.
Here is how Morningstar explain their star rating system works:
“Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star.
Funds are rated for up to three time periods—three-, five-, and 10 years—and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. They’re a useful tool for identifying funds worthy of further research but shouldn’t be considered buy or sell recommendations.”
So the Morningstar rating takes into account returns. But also penalises negative performance and rewards consistency of returns.
Affluence Investment Fund Ranking
The following table shows how the Affluence Investment Fund ranked in different time periods compared to the other funds in its category as at 31 December 2017:
We take a long-term view with the funds that we include in the Affluence Investment Fund portfolio. Potential investors considering investing with us in the Affluence Investment Fund should focus on the longer-term results as well.
You can access the most up to date information on the Affluence Investment Fund directly from the Morningstar site by going here.
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The Morningstar Rating™ is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision. © 2017 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs.
Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf.You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.
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