Saturday Star

HOW PLEXCROWN RATES FUNDS

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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.

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