HOW PLEXCROWN 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: • 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 interestbearing money market sub-category are excluded.
• The Financial Services Boardapproved 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 and five years are time-weighted by applying weights of 40 percent and 60 percent. 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 percent to each fund’s percentile rankings per measure.
• In the multi-asset sub-categories (excluding multi-asset income), a weighting of 25 percent 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 percent 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 sub-category.