Morningstar Canada has launched a list of fund analyst picks on its Web sites.

The list posted on Morningstar.ca and MorningstarAdvisor.ca. is a collection of favourite investment funds selected by Morningstar.

Morningstar says its fund analysts comb through the Canadian mutual fund landscape to come up with a handful of top choices that represent their best investment ideas. It adds that the fund analyst pick designation “conveys a host of qualitative forward-looking information on each fund’s management, investment strategy, fees and stewardship.”

“We utilize the data, tools, and analytics we’re known for as a foundation for the qualitative analysis we conduct to come up with a list of our favourite funds. The fund analyst pick designation is the highest honour we can bestow upon a fund,” says David O’Leary, manager of fund analysis at Morningstar.

“Fund analyst picks must have an experienced management team, preferably with a long track record of posting strong performance. Though this doesn’t guarantee future success, it’s one of the better predictors we have at our disposal,” he says.

Morningstar analysts also look for a consistent investment strategy that allows funds to ride out market fluctuations. “We’re big fans of investment managers who maintain one strategy for the long term,” O’Leary adds.

A fund’s fees are another important point Morningstar analysts consider. “With all the funds available in Canada, there is often a similarly attractive offering that sports a lower fee,” says O’Leary.

Finally, stewardship analysis consists of asking any question that tries to get to the bottom of whether a firm has the best interests of unitholders at heart. “It can help determine the difference between a great investment and a potential mistake,” O’Leary says.

Morningstar say the list builds, on its Morningstar ratings, which helps identify funds that have performed well and are worthy of further research. The fund analyst pick designation identifies funds that, in Morningstar’s opinion, are the most attractive investments.

The list is updated regularly to reflect fund cappings, manager changes, and other issues that arise; formal reviews are conducted every quarter. Each pick is accompanied by a commentary that explains the rationale behind its place in the line-up.