Allan Gray excels in Plexcrown survey

Allan Gray has emerged as South Africa’s top-rated collective investment scheme manager for the second quarter of 2008, having excelled in managing both domestic funds and rand-denominated foreign funds.

The investment house attained a rating of 4.125 PlexCrowns out of a maximum score of five, according to the results of PlexCrown Fund Ratings’ latest quarterly PlexCrown survey. Although Allan Gray was runner-up in the domestic fund category behind Investec, Ryk de Klerk, director of PlexCrown Fund Ratings, says its deft management of foreign funds, where it attained top position, helped the asset manager to achieve pole position overall.

Allan Gray’s scores in the subcategories of domestic fund management comprise a joint top ranking in fixed interest, joint fifth place in asset allocation and an average ranking in equity. In terms of the foreign subcategories, it achieved top position in foreign and worldwide flexible, and was runner up in foreign equity.

Investec was ranked second overall, scoring a total of 3.869 PlexCrowns. Among the domestic subcategories it outperformed its peers in asset allocation and real estate. It also achieved an above-average rating in equity and an average rating in fixed interest.

Investec’s foreign fund ratings diluted its overall score. It achieved an average rating in the foreign and worldwide flexible subcategory, and third position in foreign equity.

Prudential inched ahead of STANLIB into third place overall with a rating of 3.750 PlexCrowns. Ranked joint second for its total domestic fund management, Prudential’s score comprises a shared fourth position in equity, joint third position in fixed interest and joint fifth position in asset allocation.

The investment house achieved a joint second place in the foreign fixed interest category. However, the company’s underachievement in foreign equity diluted its total foreign rating to an average of 3.000 PlexCrowns.

“The PlexCrown survey shows at a glance how a fund has fared on a risk-adjusted return basis over time compared with its peers,” says De Klerk. The ratings, indicated by the number of PlexCrowns, incorporate not only returns and standard risk measurements, but also measures of downside risk and managerial skill. A total of 280 domestic funds qualified for the latest rating.

According to de Klerk, ratings are done in accordance with guidelines set by the Association of Collective Investment Schemes. The emphasis is on the longer term and subcategories are rated only if they have at least five funds of three years or older. Only funds with an official track record of at least three years qualify for rating.

The complete survey is available at www.plexcrown.co.za.

Investment proficiency
The graph below indicates fund managers’ investment proficiency across both domestic and foreign assets. Allan Gray emerged significantly ahead of the 13 managers rated in the PlexCrown survey.
 (click on image to enlarge)

TABLE

Fund manager ranking for the quarter ended 30 June 2008