HOW THE TOP COMPANY IS CHOSEN
The PlexCrown rating system is used to determine the collective investment scheme, or unit trust, manager of the year.
First, funds with at least a threeyear history are awarded a PlexCrown rating, except for funds in sub-categories such as money market funds, varied specialist funds and targeted absolute and real return funds. Then, the average PlexCrown ratings for each unit trust manager are calculated by averaging the PlexCrowns of their funds in each of the following broad categories:
Domestic asset allocation (including the prudential and flexible sub-categories);
Domestic equity (including general equity, all the specialist equity sub-categories and the real estate general category);
Domestic fixed interest (including the bond and income subcategories);
Worldwide flexible; Foreign asset allocation flexible; Foreign equity; and Foreign fixed-interest bond. A domestic rating is then calculated using the average scores calculated in the domestic sectors on an equal weighting. In order to qualify for a domestic rating, a manager has to have a fund in each of the abovementioned sectors.
A manager’s foreign rating is calculated by averaging the ratings of all the manager’s funds listed in the foreign sectors. A manager has to have at least one fund in the foreign equity general sub-category to qualify for a foreign rating.
A manager’s overall rating is calculated by weighting the domestic ratings by 75 percent and the foreign ratings by 25 percent. A manager must have a domestic and a foreign rating to qualify for an overall rating.
For more information, visit the PlexCrown website at www.plexcrown.co.za