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Coronation’s embarrassing big bet on African Bank Investments Limited (Abil) failed to knock its performance. The fund management company was ranked, again, as South Africa’s best fund manager. Allan Gray, which was buying Abil shares as Coronation was dumping them before the bank collapsed, was also unscathed by the Abil saga. It remains among the country’s top fund managers, in third place, according to the PlexCrown Unit Trust survey. Before you hand over savings to fund managers with a view to growing your wealth, check what they charge. Often the costs of investing in actively managed fund – which is what these fund managers sell – wipes out returns. The alternative is a lower cost index tracker, which will give you average market or sector returns. – JC
Unit trust survey: Third quarter 2014
Top fund managers
Coronation retains top spot, PSG leaps into second place
Coronation maintained its position as South Africa’s leading collective investment scheme manager based on the risk-adjusted performance over three and five years of all its rated funds under management. Coronation had the highest CIS management company rating of 4.367 PlexCrowns among ASISA-registered management companies in the September quarter (SEE TABLE 5).
Coronation had the second-highest rating behind Community Growth in the broad South African Interest Bearing category with 4.992 PlexCrowns, and the third-highest rating of 4.815 PlexCrowns behind Ashburton and Foord in the broad South African Multi Asset Non-income category. Coronation’s overall rating was also supported by the investment house’s seventh-highest weighted average rating of 3.846 PlexCrowns in the broad rand-denominated Global & Worldwide category and the seventh-highest rating of 3.428 PlexCrowns in the broad South African Equity & Real Estate category.
Fourteen of Coronation’s 17 rated funds had above-average ratings of 4 or more PlexCrowns. Nine of the investment house’s rated funds were in the top three slots in their subcategories. Coronation Industrial Fund, Coronation Jibar Plus Fund and Coronation Strategic Income Fund were the leaders in their respective subcategories. Three funds, namely Coronation Financial Fund, Coronation Resources Fund and Coronation Property Equity Fund, were runners-up in their respective subcategories (SEE TABLE 1).
On a straight performance basis Coronation Capital Plus, Coronation Market Plus Fund, Coronation Strategic Income Fund and Coronation Top 20 Fund were the top-performing funds in their subcategories over ten years, while Coronation Global Capital Plus (ZAR) Feeder Fund led its subcategory over five years.
PSG had the second-highest CIS management company rating of 3.969 PlexCrowns among ASISA-registered management companies in the third quarter. PSG was runner-up to Foord in the broad South African Equity & Real Estate category with a weighted average rating of 4.367 PlexCrowns. PSG was ranked sixth in the broad South African Multi Asset Non-income category with 4.133 PlexCrowns and seventh in the broad rand-denominated South African Interest Bearing & Income category. Nine of PSG’s 11 rated funds had above-average ratings of 4 or more PlexCrowns while two funds achieved 5 PlexCrowns (SEE TABLE 2).
Allan Gray had the third-highest CIS management company rating of 3.898 PlexCrowns among ASISA-registered management companies in the September 2014 quarter. The company shared the third-highest rating of 4.000 PlexCrowns in the broad South African Equity & Real Estate category and shared fourth spots in the broad South African Interest Bearing and Global & Worldwide categories with 4.000 PlexCrowns. Allan Gray was ranked tenth in the broad South African Multi Asset Non-income category with 3.708 PlexCrowns. Four of Allan Gray’s six rated funds had above-average ratings of 4 or more PlexCrowns (SEE TABLE 3).
Oasis was the leading FCIS management company in the third quarter with an overall rating of 4.500 PlexCrowns (SEE TABLE 6). Oasis had the third-highest rating in the broad Offshore Equity & Real Estate category. All three of Oasis’ rated funds achieved above-average ratings of four or more PlexCrowns. Oasis Crescent Global Property Equity Fund (Ireland) was the leading fund in the Global Real Estate category (SEE TABLE 4).
Note: The methodology to calculate the ratings of CIS management companies is based on applying weights to each of the four broad unit trust sectors based on the total money invested in the sectors and skill. The size of a rated fund of a company relative to the combined size of all the rated funds in that company’s fold in a specific broad unit trust sector is also taken into account to determine each management company’s rating in its broad unit trust sector. The company’s South African rating accounts for 85% of the overall rating, with South African Equity and Real Estate combined accounting for 25% of the overall rating, South African Interest Bearing and Multi Asset Income combined 25%, and South African Multi Asset (excluding South African Multi Asset Income) 35%. The company’s Global rating accounts for 15% and is a combination of the Global and Worldwide categories as an asset class. The fund sizes at the end of the previous quarter are used in the calculations.
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