Coronation regains top ranking

[First published in Personal Finance, July 2015]

Coronation Fund Managers has reclaimed its position as the top manager of South African unit trust funds after losing its crown to Nedgroup Investments in the first quarter of this year. This is according to the latest PlexCrown survey, which is to the end of June.

The survey rates actively managed collective investment schemes and scheme managers based on risk-adjusted returns.

Coronation achieved a rating of 4.206 PlexCrowns, narrowly beating Nedgroup, with 4.118 PlexCrowns.

PSG, with 3.482 PlexCrowns, retained third position.

Absa Investment Management, with 3.317 PlexCrowns, moved up into fourth place, bumping Prudential, with 3.282 PlexCrowns, down to fifth.

The PlexCrown ratings take into account both consistency of performance and the risk that a fund manager takes when investing, with managers scoring higher for good returns at low risk.

A company’s qualifying funds are rated in one of four broad unit trust sectors:

* South African equity and real estate;

* South African interest-bearing and multi-asset income;

* South African multi-asset (excluding multi-asset income); and

* Global and worldwide.

A company’s rating in each sector is accorded a different weighting when its overall rating is calculated:

* South African equity and real estate: 25 percent of the overall rating;

* South African interest-bearing and multi-asset income: 25 percent;

* South African multi-asset (excluding income): 35 percent; and

* Global and worldwide: 15 percent.

Coronation was runner-up to Allan Gray in the South African interest-bearing sector, with 4.972 PlexCrowns. It had the fourth-highest rating of 4.389 PlexCrowns, behind Foord, Rezco and Nedgroup, in the South African multi-asset non-income sector. The investment house had the sixth-highest rating of 3.384 PlexCrowns in the South African equity and real estate sector, and the eighth-highest rating of 3.876 PlexCrowns in the rand-denominated global and worldwide sector.

Six of Coronation’s 19 funds that qualify for a rating achieved five PlexCrowns each, while eight funds obtained four PlexCrowns each.

Two of Coronation’s six funds that qualify for ratings in the broad global and worldwide sector not only achieved five PlexCrowns, but also ranked first in their respective sub-categories:

* The Global Managed [ZAR] Feeder Fund (global multi-asset high equity); and

* The Global Capital Plus [ZAR] Feeder Fund (global multi-asset low equity).

The other funds that obtained five PlexCrowns were:

* The Industrial Fund, which was ranked first in the South African equity industrial sub-category;

* The Jibar Plus Fund, which was ranked second in the South African interest-bearing short-term sub-category;

* The Strategic Income Fund, which was ranked second in the South African multi-asset income sub-category; and

* The Balanced Plus Fund.

Nedgroup Investments’s overall rating was supported by its:

* Third-highest weighted average rating of 4.271 PlexCrowns in the broad global and worldwide sector;

* Third-highest rating, behind Allan Gray and Coronation, in the broad South African interest-bearing sector, with 4.346 PlexCrowns;

* Third-highest rating of 4.488 PlexCrowns, behind Foord and Rezco, in the broad South African multi-asset non-income sector; and

* Ninth-highest rating of 3.281 PlexCrowns in the broad South African equity and real estate sector.

Six of Nedgroup’s 18 funds that qualify for a rating each achieved the highest rating of five PlexCrowns, while five funds achieved four PlexCrowns.

The following funds obtained five PlexCrowns and were first in their respective South African equity sub-categories:

* The Entrepreneur Fund;

* The Financials Fund; and

* The Mining and Resource Fund.

The other funds that achieved five PlexCrowns were the:

* Stable Fund, which was ranked third in the low-equity sub-category;

* Global Equity Feeder Fund, which was ranked second in the global equity general sub-category; and

* Flexible Income Fund, which was second in the multi-asset income sub-category.

PSG was in third place, behind Foord and Ashburton, in the broad South African equity and real estate sector, with a weighted average rating of 3.867 PlexCrowns. PSG achieved above-average ratings of 3.506 and 3.351 in the broad South African multi-asset non-income and the South African interest-bearing and income sectors respectively.

Two of PSG’s 12 funds that qualify for a PlexCrown rating achieved five PlexCrowns each. One of these funds, the Equity Fund, was ranked first in the South African equity general sub-category. The other fund to obtain five PlexCrowns was the Balanced Fund.

Three of PSG’s funds achieved four PlexCrowns each.

OFFSHORE MANAGERS

Nedgroup Investments moved up the ratings to share first place with Oasis as the top manager of offshore funds approved by the Financial Services Board as suitable for South African investors.

Nedgroup and Oasis both achieved a rating of 4.000 PlexCrowns in the quarter to June 30. Investec retained third place, with a rating of 3.875 PlexCrowns.

Nedgroup, together with Foord, Investec, Lloyds and Marriott, was runner-up to Coronation in the broad offshore asset allocation sector, with 4.000 PlexCrowns. Nedgroup shared third place with Momentum and Oasis in the broad equity and real estate sector, where Coronation and Standard Bank were ranked first and second respectively.

One of Nedgroup’s three funds that qualify for a rating, the Global Flexible Fund, achieved five PlexCrowns and was ranked first in the global asset allocation sector, while the Global Equity Fund obtained four PlexCrowns.

Oasis shared third place in the broad equity and real estate sector, where all three of Oasis’s rated funds achieved four PlexCrowns each.

RANKING OF COLLECTIVE INVESTMENT SCHEME MANAGEMENT COMPANIES TO JUNE 30, 2015

Domestic companies

1. Coronation: 4.206

2. Nedgroup Investments: 4.118

3. PSG: 3.482

4. Absa: 3.317

5. Prudential: 3.282

6. Allan Gray: 3.271

7. Investment Solutions: 3.229

8. Marriott: 3.189

9. Sanlam Investment Management: 3.098

10. Momentum: 3.059

11. Old Mutual: 3.055

12. Discovery: 3.021

13. Investec: 2.842

14. Prescient: 2.802

15 .Oasis: 2.643

16. Stanlib: 2.496

Offshore companies

1. Nedgroup Investments International: 4.000

1. Oasis: 4.000

3. Investec: 3.875

4. Lloyds: 3.611

5. Stanlib: 3.611

6. Marriott: 3.500

6. Momentum: 3.500

8. Sarasin: 3.334

9. Investment Solutions: 3.083

10. Franklin Templeton: 2.542

11 Ashburton: 2.333

12. Orbis: 2.250

12. PSG: 2.250

14. M&G: 1.750

15. Sanlam: 1.500

Source: PlexCrown Fund Ratings

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