Weekend Argus (Saturday Edition)
HOW THE PLEXCROWN SYSTEM RATES FUNDS
THE PLEXCROWN Fund Ratings, which form the basis of the Raging Bull Awards, are in line with guidelines set by the Association for Savings & Investment South Africa and criteria set by PlexCrown Fund Ratings. They are as follows:
• Unclassified funds are not rated. • Gold and precious metal funds are excluded.
• A sub-category is rated only if it consists of at least five funds.
• Only funds with a performance history of at least five years can qualify for a rating.
• Pure index-tracking funds are excluded.
• Funds in the South African equity general and large-cap sub-categories that track indices where investment methodologies are involved are rated with other funds in their sub-category.
• Funds in the South African interest-bearing money market subcategory are excluded.
• The Financial Services Board- approved global asset allocation prudential and flexible sub-categories are rated in the broader global asset allocation category.
• Where a fund has more than one class, the returns of the higher-cost A-class fund are used.
• Funds in non-multi-asset and interest-bearing variable-term subcategories are ranked on a percentile basis over five- and three-year periods according to the Sharpe Ratio, Alpha, Treynor Ratio, Sortino Ratio and Omega.
• Funds in the multi-asset subcategories (excluding multi-asset income) are ranked over five- and three-year periods according to the Sharpe Ratio, Alpha, Sortino Ratio and Omega.
• Funds in the multi-asset income and interest-bearing short-term subcategories are ranked over five- and three-year periods according to the Sharpe Ratio, Alpha and Sortino Ratio.
• The funds’ percentile rankings per measure over three years and five years are time-weighted by applying weights of 40% and 60%. The total percentile ranking of funds in the non-multi-asset and interest-bearing variable-term sub-categories are then calculated by applying a weight of 20% to each fund’s percentile rankings per measure.
• In the multi-asset sub-categories (excluding multi-asset income), a weighting of 25% is given to the four performance measures: the Sharpe Ratio, the Sortino Ratio, Alpha and Omega.
• In the multi-asset income and interest-bearing short-term subcategories, a weighting of 33.33% is given to the three performance measures: the Sharpe Ratio, the Sortino Ratio and Alpha.
• The fund with the highest weighted percentile ranking is therefore the winner in its subcategory.