Sifter has been awarded a perfect five-star rating by Morningstar, one of the world’s leading specialist in fund analysis. The five-star rating, which is familiar to many from the world of cinema, means that Sifter Fund is rated among the best in its category.
Morningstar awards star ratings based on the risk-adjusted actual returns of funds. The risk-adjusted returns of a five-star fund put it in the top 10% of its category.
The calculation of returns takes fees into account, which means that it reflects the actual returns earned by investors. Risk refers to fluctuations in the value of the fund. Morningstar pays particular attention to sharp drops in value.
Morningstar’s data also shows that Sifter’s performance has improved over the past few years compared to its peers.
From its inception in almost 17 years (2003/06/19-2020/04/30) the Fund has outperformed its benchmark index (MSCI ACWI).
Annualized return since inception being 8.4% vs 7.3%. On an annualized basis, the Sifter Fund’s return is 0.9% better than the index.
During the past three years, Sifter has generated average annual returns of 6.7%, with the benchmark index yielding returns of 4.0% per year.
“Over the past few years, we have further sharpened the strict criteria we use to select high-quality companies for the Sifter portfolio,” says Santeri Korpinen, CEO of Sifter Capital Oy.
Sifter’s R and I classes, which both have been in operation longer than the PI class, received five star rating in March 2020.
The difference in the ratings is attributable to the fact that the fund management fees for the R class are 0.4 percentage points higher than those of the PI class. The minimum subscription amount is €100,000 for the R class and €5 million for the PI class. The investments are identical between the different classes.
A film with a five-star rating is usually worth going to the cinema for, but funds and films are two different things.
While the star ratings awarded by a film critic are partly based on subjective preferences and the prevailing views of art at the time, the star ratings of mutual funds are purely based on historical data. Star ratings are not a guarantee of future success.
“Achieving a five-star rating has taken a lot of work, and we are very pleased that the results of our efforts are recognised by an esteemed rating agency such as Morningstar.”
“We will continue to follow our recipe to identify even better companies for the Sifter portfolio and we believe this approach will be reflected in the prices of our holdings sooner or later,” Santeri Korpinen adds.