Our annual RI ranking is based on the following weighted scores:
Portfolio Turnover Rate: 10% Engagement: 20% Integration: 19% Systemic: 6% Performance: 45%
For Performance: We used a blend of 1-year and 3-year relative performance (percentile ranking within the fund category). For funds with less than 3 years of history, we used the 1-year performance.
Performance data as of November 30, 2011 provided by Morningstar. All non-performance data obtained from the fund companies.
For turnover: Data was obtained from SEDAR by accessing the management report of fund performance. To calculate TOR, Corporate Knights input the simple formula 1-(Fund's TOR) to reward the funds with lower turnover rates. The reasoning behind this was that if turnover is occurring less often, funds are likely holding the course, and causing lower transaction costs.
For Social Score/ESG Integration: Corporate Knights sent out surveys to the different fund managers, and marked them accordingly, to determine the Corporate Knights social score. The social score for the 2012 Corporate Knights RI Ranking was determined with survey data obtained for the 2011 RI Ranking survey. See spreadsheet for a detailed breakdown of the social scoring.
© 2012 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Primary Research, Ranking & Methodology by Jeremy Runnalls, Managing Editor