Ashburton rules as top offshore manager

Ashburton is ranked as the top offshore management company for the second quarter of 2009 in PlexCrown Fund Ratings’ most recent survey. Excelling in the FSB-approved offshore collective investment scheme (CIS) manager ratings, the management company achieved an overall ranking of 3.483 PlexCrowns out of a maximum of five.

“The company continues to excel in virtually all categories in which it competes," says Ryk de Klerk, director of PlexCrown Fund Ratings. It achieved a first place in both European Equity and Global Asset Allocation, second place in Global Fixed Interest: Other Income and joint second place in US Equity.

Sarasin and TriAlpha shared the second spot overall with 3.333 PlexCrowns. Tri-Alpha also ranked as the best Global Fixed Interest Bond manager. Sarasin was runner-up in Global Asset Allocation and, jointly with Investec, was the most proficient manager in Equity and Fixed Interest combined.

Other investment houses deserving of mention for their second quarter ratings include Melville Douglas, the leading manager in Global Fixed Interest: Other Income and RE:CM, the leading manager in Total Equity. Orbis and Oasis ranked in third and fourth place respectively in Total Equity.

The best-performing fund category over the three months to 30 June was Far East Equity General with 18.28%. According to De Klerk, this reflects investors’ increased appetite for emerging-market risk as global credit markets continued to thaw during the second quarter.

Due to improved rand strength against the US dollar, the worst fund category during the second quarter was USA Fixed Interest Money Market with -19.64%.

Over one and three-year periods the fixed interest related categories beat the equity categories hands down. The best category over one year was the USA Fixed Interest Money Market with 5.32% and over three years was the Far East Fixed Interest Money Market Funds with 12.91% p.a.

“In anticipation of the worst being over in the global liquidity squeeze, and the global economic downturn considered to be in its final phase, bond indices in developed economies have weakened considerably,” says De Klerk. “The US Bond Index was down 3.2%, registering its worst quarter since 2004. Conversely, emerging market bonds had their best quarter since 2003 with a return of 10%, as risk aversion moderated significantly.”

A total of 155 funds were rated in the PlexCrown Survey at the end of June, compared with 161 at the end of March. Of these, 62% retained their ratings, 37% experienced minor rating changes and two experienced major rating changes. Six funds qualified for ratings for the first time and 12 funds lost their ratings, mostly due to the funds changing category.

According to De Klerk, ratings are done in line with guidelines set by the Association for Savings and Investment South Africa (ASISA). 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.

Melville Douglas, could not qualify for rating following the reclassification of its European Fund from Global Equity to European Equity.

The complete PlexCrown Survey is available at www.plexcrowns.co.za.

Leading funds per offshore unit trust category

(Previous leaders in brackets and italics)

PlexCrown foreign CIS manager ranking – overall