HOW TO READ THE PER­FOR­MANCE TA­BLE ON PAGE 4

Weekend Argus (Saturday Edition) - - FINANCE PERSONAL -

You will find your fund listed al­pha­bet­i­cally in its cat­e­gory by look­ing in the FUND NAME col­umn. Where a fund has mul­ti­ple classes – for ex­am­ple, an “A” class with un­reg­u­lated an­nual ser­vice fees and an “R” class with reg­u­lated an­nual ser­vice fees, but in which only ex­ist­ing in­vestors can in­vest – only the de­tails of the “A” class have been pub­lished. Read­ers who want in­for­ma­tion on other classes can go to /www.funds­data.co.za/navs/

An as­ter­isk (*) in front of a fund’s name means it com­plies with reg­u­la­tion 28 of the Pen­sion Funds Act and is suit­able for in­vestors who are sav­ing in a tax-in­cen­tivised re­tire­ment fund.

The NET AS­SET VALUE (NAV) PRICE is cal­cu­lated by tak­ing the to­tal mar­ket value of all as­sets in the unit port­fo­lio in­clud­ing any in­come (in­ter­est or div­i­dends) that has ac­crued and has not yet been dis­trib­uted to unithold­ers and less all ex­penses payable from the fund such as the an­nual man­age­ment fee. This amount is di­vided by the num­ber of units in is­sue to ob­tain the price.

As a re­sult of space con­straints, the ta­ble does not in­clude the INI­TIAL COST, which is the max­i­mum amount (in­clud­ing VAT) ex­pressed as a per­cent­age of your in­vest­ment that you could pay in up­front charges. It ex­cludes ad­vice fees, some or all of which may be avoided by in­vest­ing di­rectly. Many as­set man­agers no longer charge an ini­tial fee; how­ever, you should check a fund’s fact­sheet to see whether or not the fee ap­plies.

The DIV­I­DEND YIELD col­umn shows any dis­tri­bu­tions (in­come earned by the as­sets in the fund) an­nounced in the past 12 months as a per­cent­age of the cur­rent price (NAV). A hash (#) means that an es­ti­mate has been used for a re­cent div­i­dend be­cause the ac­tual div­i­dend amount is not yet avail­able. This also has a small ef­fect on per­for­mance fig­ures.

The TO­TAL EX­PENSE RA­TIO, or TER, col­umn shows the por­tion of your in­vest­ment in a fund which has been used to pay the fund’s op­er­at­ing costs over the past year, in­clud­ing an­nual man­age­ment and per­for­mance fees; trad­ing costs, such as taxes and bro­ker­age costs; trustee and cus­tody fees; au­dit fees and bank charges; liq­uid­ity costs; and in the case of funds of funds, the cost of in­vest­ments in un­der­ly­ing funds.

In the case of funds that charge PER­FOR­MANCE FEES, this fee for the past year is also shown sep­a­rately as a per­cent­age of the TER, as per­for­mance fees may vary sig­nif­i­cantly from one year to the next.

The PLEXCROWN rat­ings col­umn shows at a glance how a fund has fared over time com­pared to the other funds in its cat­e­gory on a risk-ad­justed re­turn ba­sis. The rat­ings in­cor­po­rate not only re­turns and stan­dard risk mea­sures but also mea­sures of down­side risk and man­age­rial skill. The PlexCrowns range from one to five with the top­per­form­ing funds be­ing al­lo­cated the high­est rat­ing. A full de­scrip­tion of the PlexCrown rat­ings is pro­vided at www.plexcrown.co.za, or con­tact info@plexcrown.co.za or tele­phone 011 728 5510.

The per­for­mance fig­ures of your unit trust are given for each of one year and three years. The first fig­ure shows what R100 would be worth if you had in­vested it in that fund for that pe­riod – that is one year or three years. This fig­ure is worked out with­out tak­ing the ini­tial costs into con­sid­er­a­tion. The per­for­mance fig­ures also as­sume you re-in­vested any in­come you made on the funds on the ex-div­i­dend date. The se­cond fig­ure shows how the fund is ranked in terms of this per­for­mance in re­la­tion to other funds.

Un­clas­si­fied funds are not ranked, be­cause their per­for­mance is not com­pa­ra­ble. If a fund has been re­clas­si­fied, its per­for­mance his­tory is scrapped and started afresh in the new cat­e­gory.

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