Ten Raging Bull Awards are made each year.
Four awards are made on the basis of top outright (straight) performance over three years. These awards are made in the following sectors, which attract the most investor money:
Certificates are awarded for top outright (straight) performance over three years to funds in all the qualifying sub-categories, including offshore sub-categories.
Four awards are made on the basis of risk-adjusted returns, as measured by PlexCrown Fund Ratings, over periods up to five years. These awards are for the best funds in the South African equity general sub-category, the South African multi-asset flexible sub-category, the broader South African multi-asset category (which includes the low-, medium- and high-equity sub-categories) and the offshore global asset allocation sector.
The most coveted award, for the South African Management Company of the Year, is made on the basis of an average PlexCrown rating that measures risk-adjusted returns and consistency of performance across all of a manager’s qualifying funds for periods up to five years.
PlexCrown Fund Ratings assigns each qualifying fund a score based on the fund’s risk-adjusted performance, which is calculated using three to five different measures (depending on the sub-category), over three and five years.
The size of the fund – or assets under management – relative to the combined size of all a company’s rated funds in a broad asset class or unit trust sector, is used to calculate the fund’s effective weight when determining an average score for the manager in that asset class or sector. The company’s average rating for the asset class or category is then calculated using these weighted ratings for the manager’s funds in a specific asset class or major category.
PlexCrown Ratings has determined fixed weightings for the four broad unit trust sectors based on the assets under management in these sectors and the skill involved in managing funds in them. These weightings are used when manager’s average scores in the four broad unit trust sectors or asset classes, are averaged to obtain a total score. The weightings are: South African equity and real estate weight, 25 percent; South African interest-bearing (including multi-asset income), 25 percent; South African multi-asset (excluding multi-asset income), 35 percent; and rand-denominated global and worldwide, 15 percent.
The management company of the year is the company with the highest overall weighting determined in this way. Certificates are awarded to the runners-up in second and third place in the domestic management company rankings.
There is also a Raging Bull Award for the Offshore Management Company of the Year. The award is made on the basis of a manager’s average PlexCrown rating for the management of foreign-currency funds domiciled outside of South Africa but which the FSB has approved as suitable for South African investors.
The returns of the FSB-approved offshore funds are measured in United States dollars, not rands, and the hurdle rate used to determine the PlexCrown rating is the US three-month Treasury Bill rate.
To qualify for an overall rating, a management company must have at least one fund in the global equity general sector or the global asset allocation (flexible and prudential combined) sector and at least three funds that qualify for a PlexCrown rating.