Coronation still head of the pack
19 July 2014 - Laura du Preez
Coronation Fund Managers maintained its lead among companies that manage unit trusts that invest in South African markets, as well as rand-denominated funds that invest in foreign markets, the latest survey by PlexCrown Fund Ratings shows. For the quarter to the end of June, Allan Gray was in second place, and Nedgroup Investments was ranked third.
The survey rates collective investment scheme management companies based on the risk-adjusted performance of their funds as measured by the PlexCrown ratings, across all sectors.
The PlexCrown ratings are based on four or five different measures of risk-adjusted performance over three and five years. Funds receive a PlexCrown rating of between one and five.
Coronation obtained an average rating of 4.366 PlexCrowns for the quarter to the end of June, Ryk de Klerk, a director of PlexCrown Fund Ratings, says.The manager scored well relative to other managers in the category for interest-bearing and income funds (bond funds and income funds), where it had the third-highest average rating. Coronation also had the third-highest rating in the broad South African multi-asset (non-income) category.
Coronation’s overall rating was supported by being rated eighth out of 22 managers in the broad rand-denominated global and worldwide category. In the broad South African equity and real estate category, Coronation achieved the ninth-highest rating out of 28 managers.
Coronation has 17 funds that qualify for PlexCrown ratings, of which 14 obtained above-average ratings of four or five PlexCrowns for the periods to the end of June.
Six Coronation funds in South African sub-categories obtained the highest rating of five PlexCrowns. They were the Industrial Fund (equity industrial), the Property Equity Fund (real estate general), the Jibar Plus Fund (interest-bearing short-term), the Strategic Income Fund (multi-asset income), the Balanced Plus Fund (multi-asset high equity) and the Balanced Defensive Fund (multi-asset low equity).
Nine of their rated funds were in the top three positions in their sub-categories, with the Industrial Fund and the Jibar Plus Fund first in their sub-categories.
Allan Gray achieved an average overall rating of 4.145 PlexCrowns for the quarter to the end of June, De Klerk says.
In the broad South African equity and real estate sub-category, Allan Gray shared the third-highest position, while it shared fourth position in the interest-bearing category. It was ranked fifth out of 30 managers in the broad South African multi-asset (non-income) category, and was sixth in the broad global and worldwide category.
Allan Gray has six funds that qualify for a PlexCrown rating. Four funds obtained above-average ratings: the Balanced Fund (multi-asset high equity) obtained five PlexCrowns, and three other funds each obtained four PlexCrowns.
Nedgroup Investments obtained an overall average rating of 4.062 PlexCrowns, narrowly beating PSG, which obtained an overall average rating of 3.954 PlexCrowns. Nedgroup had the third-highest rating in the broad global and worldwide category; it was joint fourth in the broad South African interest-bearing and income category, and in fourth spot in the broad South African multi-asset (non-income) category.
Nedgroup has 14 funds that qualify for a PlexCrown rating. Nine achieved above-average ratings of four or five PlexCrowns.
Oasis was the leading manager of offshore funds in the quarter to the end of June, with an average of 4.750 PlexCrowns.
Offshore funds are denominated in a foreign currency and are domiciled in a country other than South Africa. To qualify for a PlexCrown rating, the fund must be registered with the Financial Services Board as suitable for local investors.
Oasis had the second-highest rating out of 18 management companies in the broad offshore equity and real estate category.
All three of Oasis’s offshore funds that qualify for a PlexCrown rating achieved above-average ratings of four or more PlexCrowns. The Crescent Global Property Equity Fund (Ireland) was the top fund in the global real estate category, while the Global Equity Fund and the Crescent Global Equity Fund were in the top five in the global equity general category.
Nedgroup Investments International achieved the second-highest average rating, of four PlexCrowns.
Nedgroup shared the top spot in the broad offshore asset allocation category and shared fourth position in the offshore equity and real estate sector.
Investec was ranked third overall, with an average rating of 3.750 PlexCrowns. Investec shared first place in the offshore asset allocation category.
Ranking of collective investment scheme management companies at June 30, 2014
South African companies
- Coronation – 4.366
- Allan Gray – 4.145
- Nedgroup Investments – 4.062
- PSG – 3.954
- Prudential – 3.526
- Investment Solutions – 3.204
- Investec – 3.190
- Sanlam Invest. Mgmt – 3.111
- Absa – 3.049
- Old Mutual – 2.972
- Momentum – 2.960
- Oasis – 2.781
- Marriott – 2.695
- Stanlib – 2.555
- Discovery – 2.421
- Prescient – 2.295
- Grindrod – 1.846
- Oasis – 4.750
- Nedgroup Invest. Int. – 4.000
- Investec – 3.750
- Lloyds – 3.722
- Marriott – 3.500
- Momentum – 3.250
- Investment Solutions – 3.000
- Orbis – 3.000
- Stanlib – 2.833
- Franklin Templeton – 2.692
- Ashburton – 2.083
Source: PlexCrown Fund Ratings