How the leading SA managers are decided

PlexCrown Fund Ratings assign each qualifying unit trust fund a score, or rating, based on its performance over four or five different measures of riskadjusted performance over periods up to five years. These scores are used to determine the average scores of each manager in each unit trust sector, with the rating of an individual fund weighted according to the size of the fund.

The scores that a manager achieves in each unit trust sector are in turn used to determine an overall score for that manager in four broad categories: South Africa equity and real estate, South African interest-bearing, South management of funds that invest in South African markets.

It was placed fourth in both the South African interest-bearing and income category and the South African multi-asset category.

Nedgroup has 15 funds that qualify for a PlexCrown rating. Five of the funds achieved five PlexCrowns each: the Core Income Fund, the Entrepreneur Fund, the Financials Fund, the African multi-asset, and global and worldwide. An average rating for the management of funds that invest mostly in South Africa is determined using the average scores for the three South African categories.

To determine a manager’s overall rating, the averages for the four broad categories are combined according to the following weights: South African equity and real estate, 25 percent; South African interest-bearing and multi-asset income, 25 percent; South African multi-asset (excluding multiasset income), 35 percent; and global and worldwide, 15 percent. Stable Fund and the Mining & Resources Fund.

Although it did not qualify for an overall management company rating, Foord did very well in the sector rankings. It was first in the South African equity and real estate category, and in the South African multi-asset (excluding income funds) sector, Foord was joint first with Rezco. It was fourth in the global and worldwide category.