How the Raging Bull Awards are decided
The Raging Bull Awards recognise the top performers in the collective investment, or unit trust, industry.
The top funds on outright performance over three years in most domestic, rand-denominated foreign and offshore unit trust subcategories receive a certificate.
A Raging Bull Award is made to the top-performing domestic equity fund over three years among all the funds in the three sub-categories that invest across the JSE: general equity, value and growth.
The top performer over three years in the domestic fixed-interest bond and income fund subcategories also receives an award.
Two awards are made for straight performance over three years to funds that invest in foreign equity markets: one to the topperforming rand-denominated fund and one to the top-performing offshore fund. An offshore fund is not domiciled in South Africa but is registered with the Financial Services Board (FSB) as a fund that can be marketed here.
Other certificates and Raging Bull Awards – particularly for the asset allocation funds and the more popular sub-categories – are awarded on the basis of riskadjusted returns over five years, as measured by the PlexCrown ratings (see “What are Plexcrown ratings and how are they calculated?”, This is because risk management is a major factor in determining a fund’s success.
To qualify for a Raging Bull Award or a certificate, or for a management company to have the performance of a fund included in the calculation of its average PlexCrown ratings, a fund must:
Be available directly to retail investors.
In the case of an award made on the basis of straight performance, be in a domestic unit trust sub-category (including South African-domiciled foreign funds) that has at least five actively managed funds with histories of three years or more.
In the case of an award made to a foreign-domiciled (non-randdenominated) fund on the basis of straight performance, be in a subcategory that has at least nine actively managed funds with histories of three years or more.
In the case of an award made on the basis of risk-adjusted returns, be in a major domestic or foreign-domiciled asset allocation sub-category, or in one of the other larger domestic sub-categories. Sub-categories that have at least five actively managed funds with histories of five years or more are included in the awards.
Not be a passive, or an index-tracker, fund. These funds are excluded from the awards because their performance reflects market movements and not fund manager expertise.
Not be a money market fund. These funds are excluded because of the limitations on them in terms of duration and the types of instruments allowed.
Not be in a varied specialist sub-category or in the domestic asset allocation targeted absolute and real return sub-category. Funds in these sub-categories have different investment mandates and objectives, and ranking them would result in false comparisons being made.
Not have changed sub-categories during the past year. Funds that have changed sub-categories are not eligible for sub-category awards even if the Association for Savings & Investment South Africa has allowed such funds to retain their performance histories.
In the case of offshore funds, they must have been registered with the FSB for at least a year.