Fund Awards 2012 shortlist

First, we had to figure out a methodology. We decided to give most prominence to the three pillars of performance, cost and transparency, as these are the things that matter most to investors.

For the actively managed open-ended funds and investment trusts, we used our data provider partner Morningstar to get a long list based on performance and value to investors. Investors in funds are investing for the long term. So we gave most points to the five-year performance record.

We then shortlisted funds for each category based on a points score of performance record over several different periods, including 2008 when markets fell dramatically, and the length of tenure of manager. We awarded additional points for costs, in the form of the total expense ratio (TER - the best measure of the total cost to investors). We have emphasised the costs element as a way of differentiating ourselves from other fund awards, which are based purely on performance.

In the final decision we are awarding some qualitative points for quality of fund literature and communication. The fund fact sheet is often the first thing that potential investors turn to, but the quality of information on these varies dramatically. We found that some funds don't specify the TER. Others don't show the performance history against the fund's benchmark.

Investment trusts were initially shortlisted based on net asset value (NAV) performance of the fund, rather than share price over the relevant periods, but we did also look at share price performance in the final selections.

For the exchange-traded products awards, the return to investors is not as important as the accuracy with which the product tracks its benchmark index. Criteria were based on a points system taking into account cost, tracking error, transparency of website and product fact sheet, diversification of basket and level of counterparty risk.

Unlike other fund awards we haven't used a third-party judging panel as independent funds experts already have their own methodologies of judging funds and we don't want to be influenced by that.

So here is the shortlist of the funds that we rated top in their respective categories. We aim to give you plenty to choose from – with categories spanning several asset classes.

FUND AWARDS 2012 SHORTLIST

CATEGORIES: INVESTMENT TRUSTS AND OPEN-ENDED FUNDS

Best UK Equity Income fund:

Ecclesiastical Higher Income Fund

Invesco Perpetual High Income Fund

Trojan Income Fund 

Unicorn UK Income Fund

Best UK Equity Growth fund:

Edinburgh Investment Trust

Invesco Perpetual Select Trust UK Equity Share Portfolio

Liontrust Special Situations Fund

Marlborough UK Micro Cap Growth

Best Global Income fund:

Aberdeen World Growth Income Fund

Murray International Trust

Newton Global Higher Income Fund

Sarasin International Equity Income Fund

Best Global Growth fund: 

F&C Global Smaller Companies Investment Trust

Lindsell Train Investment Trust 

Personal Assets Trust

Ruffer Investment Company

Best Global Emerging Markets fund:

Aberdeen Global Emerging Markets Equity Fund

First State Global Emerging Markets Leaders Fund

Templeton Emerging Markets Investment Trust

Utilico Emerging Markets

Best Commodity fund: 

BlackRock Gold and General Fund

City Natural Resources High Yield Trust

Investec Global Gold Fund

Smith Williamson Global Gold and Resources Fund

Best bond fund: 

M&G Corporate Bond Fund

M&G International Sovereign Bond Fund

M&G Strategic Corporate Bond Fund

New City High Yield Fund

Best property fund: 

F&C Commercial Property Trust

First State Global Property Securities Fund

ISIS Property Trust 

UK Commercial Property Trust

Best tracker fund: 

Aviva Investors UK Index Tracking Fund

Edinburgh UK Tracker Trust 

Fidelity MoneyBuilder UK Index Fund

HSBC FTSE 250 Index Fund

CATEGORIES: EXCHANGE-TRADED PRODUCTS

Best ETP for UK equity exposure: 

db x-trackers FTSE All-Share ETF

db x-trackers FTSE 100 ETF

iShares FTSE 250 ETF

iShares FTSE UK Dividend Plus ETF

Best ETP for US equity exposure:

db x-trackers Russell 2000 ETF

ETFX Russell 2000 US Small Cap Fund

HSBC S&P 500 ETF

iShares S&P 500 ETF

Best ETP for Gold exposure: 

db Physical Gold ETC 

ETFS Gold Bullion Securities ETC 

ETFS Physical Gold ETC 

Source Physical Gold P-ETC

Best ETP for Global Emerging Markets equity exposure: 

db x-trackers MSCI Emerging Markets TRN Index ETF 

iShares MSCI Emerging Markets ETF 

Lyxor ETF MSCI Emerging Markets GBP 

Source MSCI Emerging Markets ETF