How the companies of the year are determined
SOUTH AFRICAN COMPANIES
Of the basket of unit trust funds a company manages, PlexCrown Fund Ratings assigns each qualifying fund a score based on between three and five measures (depending on the sub-category) of risk-adjusted performance over three and five years.
The size of a fund relative to the combined size of all the company’s rated funds in a broad asset class or major unit trust category is used to calculate the fund’s effective weight in the asset class or category. The individual fund’s effective weight is then applied to its rating.
The company’s rating for the asset class or major category is calculated using the weighted ratings of the company’s funds in that category.
Fixed weightings based on overall industry size are then applied to each of the four broad unit trust sectors or asset classes: the South African equity and real estate weight is set at 25 percent, South African interest-bearing (including multi-asset income) at 25 percent, South African multiasset (excluding multi-asset income) at 35 percent, and rand-denominated global and worldwide at 15 percent.
OFFSHORE COMPANIES
The returns of FSB-approved offshore funds are measured in United States dollars. The hurdle rate used to determine riskadjusted returns is the US threemonth Treasury Bill rate.
To qualify for an overall rating, a management company must have at least one fund in the global equity general or global asset allocation (flexible and prudential combined) categories and at least three rated funds.