Allan Gray returns to the top of the manager rankings

Allan Gray has ousted Nedgroup Investments as the top manager of South African unit trust funds. However, Nedgroup Investments has retained its position as the top manager of offshore funds, according to the latest PlexCrown survey.

The last time Allan Gray was ranked number one was in the fourth quarter of 2013. It then slipped down the rankings, languishing in sixth position for two quarters. The company shot into second place in the third quarter of 2015 and was ranked third in the fourth quarter.

The PlexCrown survey, which is conducted quarterly, rates actively managed collective investment schemes and scheme managers based on their riskadjusted returns.

The PlexCrown ratings take into account consistency of performance and the risk that a fund manager takes when investing, with managers scoring higher for good returns at low risk. Funds are rated from one to five PlexCrowns.

According to the survey for the quarter to the end of March this year, Allan Gray achieved a rating of 4.306 PlexCrowns, up from 3.514 in the fourth quarter of 2015.

Second-placed Nedgroup Investments dipped from 3.999 to 3.972 PlexCrowns, while third- placed Coronation Fund Managers saw its rating increase slightly from 3.628 to 3.640.

Nedgroup Investments was ranked the top manager of South African funds for the past two quarters and the leading manager of offshore funds for the past three. In January, it won the Raging Bull Awards for the best South African and the best offshore management company of 2015.

Five of Allan Gray’s eight funds that qualify to be included in the PlexCrown ratings achieved above-average ratings of four or more PlexCrowns. Three funds received five PlexCrowns: the Global Fund of Funds, classified in the global multi-asset high-equity sub-category, the Balanced Fund (South African multiasset high equity) and the Stable Fund (South African multi-asset low equity).

Allan Gray’s Equity Fund (South African equity general) and its Bond Fund (South African interest-bearing variable term) received four PlexCrowns.

Two funds received three PlexCrowns: the Global Equity Feeder Fund (global equity general) and the Optimal Fund (multi-asset low equity).

The Global Optimal Fund of Funds (global multi-asset low equity) received the lowest rating of one PlexCrown.

Eleven of Nedgroup Investments’s 19 qualifying funds achieved a rating of four or more PlexCrowns, with five funds achieving five PlexCrowns. They were: the Financials Fund (South African equity financial), the Private Wealth Equity Fund (South African equity general), the Entrepreneur Fund (South African equity mid- and small-cap), the Flexible Income Fund (South African multi-asset income) and the Stable Fund (South African multi-asset low equity).

The funds that achieved four PlexCrowns were the Global Equity Feeder Fund (global equity general), the Global Flexible Feeder Fund (global multi-asset flexible), the Mining & Resource Fund (South African equity resource), the Core Bond Fund (South African interest-bearing variable term), the Core Diversified Fund (South African multi-asset high equity), the Core Guarded Fund (South African multi-asset low equity) and the Bravata Worldwide Flexible Fund (worldwide multi-asset flexible).

Of Coronation’s 19 qualifying funds, 10 achieved above- average ratings. Four funds receive a rating of five PlexCrowns: the Industrial Fund (South African equity industrial), the Jibar Plus Fund (South African interest-bearing short term), the Bond Fund (South African interest-bearing variable term) and the Income Fund (South African multiasset income).

Six funds achieved a rating of four PlexCrowns: the Global Managed (ZAR) Feeder Fund (global multi-asset high equity), the Global Capital Plus (ZAR) Fund (global multi-asset low equity), the Financial Fund (South African equity financial), the Balanced Defensive Fund (South African multi-asset low equity), the Property Equity Fund (South African real estate general) and the Optimum Growth Fund (worldwide multiasset flexible).

OFFSHORE FUNDS

Nedgroup Investments achieved five PlexCrowns for the management of offshore funds approved by the Financial Services Board as suitable for South African retail investors. All three of the asset manager’s qualifying funds were awarded five PlexCrowns: the Global Cautious Fund and the Global Flexible Fund (both global asset allocation flexible funds) and the Global Equity Fund (global equity general).

ACPI retained its position as the second-best manager of offshore funds, with a rating of 4.500 PlexCrowns. Two of its five qualifying funds, the Balanced Ucits Fund (global asset allocation flexible) and the Rubrics Global Credit Ucits Fund (global fixed-interest bond), achieved five PlexCrowns. Two global fixed-interest funds, the Rubrics Global Fixed-income Ucits Fund and the Rubrics International Bond Ucits Fund, achieved four PlexCrowns.

Marriott, with a rating of 4.000 PlexCrowns, moved up the rankings to oust Oasis, which has been among the top three for a number of quarters, from third position. One of Marriott’s three qualifying funds, the International Growth Fund (global asset allocation flexible), achieved five PlexCrowns, while its First World Equity Fund (global equity general) achieved four PlexCrowns.