HOW THE TOP COM­PANY IS CHO­SEN

Weekend Argus (Saturday Edition) - - GOODHANGOUTS -

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

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