How the lead­ing SA man­agers are de­cided

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

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.

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