Coronation keeps its crown

27 April 2014 - Laura du Preez

Coronation has again emerged as the top manager of domestic unit trust funds in the quarterly PlexCrown Fund Ratings survey.The survey rates unit trust managers based on the risk-adjusted performance of their funds across all the unit trust sectors and over periods of up to five years.

Coronation Fund Managers overtook Allan Gray as the leading fund manager in the last quarter of 2012 and has remained in the top position each quarter since then. Allay Gray was again in second position in the survey for performance periods to the end of March.

The PlexCrown ratings are based on four or five different measures of risk-adjusted performance over three and five years.The ratings are averaged in various broad unit trust sectors, and the scores in these sectors are then averaged to obtain an overall score for each manager of between one and five PlexCrowns. Weightings apply when the averages are calculated to take account of fund size and category size.

Coronation obtained an overall average rating of 4.544 PlexCrowns in the survey.

The manager has 17 funds that qualified for a rating, and of these, 15 obtained either the highest score of five PlexCrowns or the second-highest score of four PlexCrowns.Coronation’s best average score – 4.960PlexCrowns – was for its South African fixed-interest funds, and it was ranked second among its peers in this broad sector.Coronation has three fixed-interest funds, two of which – the Strategic Income Fund (multi-asset income sub-category) and the Bond Fund – obtained five PlexCrowns each.

In the South African multi-asset (non-income) category, Coronation obtained an average of 4.803 PlexCrowns and was ranked fourth among its peers. Two of its funds in this category, the Balanced Plus Fund (multi-asset high equity) and the Balanced Defensive Fund (multi-asset low equity), each obtained five PlexCrowns.

In the broad South African equity and real estate sector, Coronation obtained an average score of 4.106 PlexCrowns and was rated third among its peers. Of its seven funds in this category, three obtained five PlexCrowns each: the Industrial Fund, the Resources Fund and the Property Equity Fund. 

Coronation was rated sixth among its peers, with an average rating of 3.977 PlexCrowns, in the broad rand-denominated global and worldwide sector. One of the manager’s four funds in this category, the Optimum Growth Fund (worldwide multi-asset flexible), obtained five PlexCrowns.In the overall ratings, runner-up Allan Gray obtained an average score of 4.293 PlexCrowns.

Allan Gray has seven funds that qualify for PlexCrown ratings, and four obtained scores of four or five PlexCrowns each.Allan Gray was the leading manager in the South African interest-bearing category, where its Bond Fund obtained five PlexCrowns.

In the global and worldwide sector, Allan Gray also obtained an average score of five PlexCrowns and shared first place with Old Mutual and Regarding Capital Management (RE:CM). Allan Gray’s two funds in this category, the Orbis Global Equity Feeder Fund and the Orbis Global Fund of Funds (global multi-asset high equity sub-category), each obtained five PlexCrowns.Allan Gray was ranked seventh in the broad South African multi-asset (non-income) sector, with 4.409 PlexCrowns. Its Balanced Fund (multi-asset high equity) obtained five PlexCrowns.

PSG Asset Management overtook Nedgroup Investments to claim third place in the management company rankings. It overtook Nedgroup for the first time in the quarter to the end of September last year, but fell back into fourth place in the quarter to the end of December last year.For the periods to the end of the March 2014 quarter, PSG had an overall rating of 4.128 PlexCrowns.

PSG has 12 funds that qualify for a PlexCrown rating. Ten funds obtained above-average ratings of four or five PlexCrowns. PSG was runner-up to Foord in the broad South African equity and real estate sector, with a weighted average rating of 4.323 PlexCrowns.

PSG has three funds in this sector, and one of them, the PSG Equity Fund, obtained five PlexCrowns. PSG was ranked eighth in the broad multi-asset (non-income) sector, with 4.313 PlexCrowns. Two of PSG’s four funds in this sector, the Balanced Fund (multi-asset high equity) and the Flexible Fund, each obtained five PlexCrowns each. PSG was ranked ninth in the broad rand-denominated global and worldwide category.

Offshore managers

Lloyds Asset Management was again the leading manager of offshore funds (funds denominated in a foreign currency and domi-ciled outside of South Africa) in the PlexCrown Fund Ratings quarterly survey. The survey rates managers of foreign funds that are registered with the Financial Services Board (FSB) as suitable for South African investors.

Lloyds obtained an overall average rating of 4.480 PlexCrowns for the seven foreign funds it has registered with the FSB. Four of the seven funds obtained an above-average rating of four or five PlexCrowns. Lloyds was the leading manager in the offshore asset allocation category, where its flexible fund, the Multi Strategy (Limited Growth) Fund, obtained five PlexCrowns.

Lloyds, together with Stanlib, was the leading manager in the offshore fixed-interest category, where Lloyds’s Investment Funds Limited High Income Fund achieved four PlexCrowns. Another Lloyds fund that achieved five PlexCrowns was the Investment Funds Limited North America Fund (United States equity general category).

Oasis Asset Management was the runner-up in offshore manager rankings, with an overall rating of 4.250 PlexCrowns. Oasis had the third-highest rating in the broad offshore equity and real estate category. Of its three funds in this category, the Global Equity Fund obtained the highest rating of five PlexCrowns. All three of Oasis’s funds that qualify for PlexCrown ratings achieved above-average ratings of four or five PlexCrowns.

Nedgroup Investments International had the third-highest rating among the offshore management companies. Its overall score was 4.000 PlexCrowns. Two of Nedgroup Investments International’s three funds that qualify for a PlexCrown rating had above-average ratings of four or five PlexCrowns.

Nedgroup Investments shared the second spot with Investec, Franklin Templeton, Marriott and Foord in the broad offshore asset allocation category. The Nedgroup Investments Global Flexible Fund achieved a rating of five PlexCrowns and was the third-highest rated fund among 29 funds in the global asset allocation flexible category.

The manager shared fourth position with Coronation in the offshore equity and real estate category.

 

LOCAL MANAGER PLEXCROWN RANKINGS TO MARCH 31, 2014                                        
  1. Coronation – 4.544
  2. Allan Gray – 4.293
  3. PSG – 4.128
  4. Nedgroup Investments – 3.979
  5. Prudential – 3.726
  6. Investment Solutions – 3.419
  7. Oasis – 3.281
  8. Investec – 3.158
  9. Sanlam Investment Management (SIM) – 3.147
  10. Old Mutual – 2.993

 

OFFSHORE MANAGER PLEXCROWN RANKINGS TO MARCH 31, 2014
  1. Lloyds – 4.480
  2. Oasis – 4.250
  3. Nedgroup Investments International – 4.000
  4. Stanlib – 3.473
  5. Investment Solutions – 3.333
  6. Franklin Templeton 3.255
  7. Orbis – 3.250
  8. Prescient – 3.250
  9. Marriott – 3.000
  10.  Investec – 2.759