Plexcrown ratings reveal top offshore funds

Aviva was crowned leading management company of offshore collective investment schemes approved by the Financial Services Board, according to the latest PlexCrown survey for the second quarter.

“The survey, which Plexus group conducts quarterly, shows how a fund has fared on a risk-adjusted return basis over time compared with its peers,” says Ryk de Klerk, director of PlexCrown Fund Ratings. “The ratings, indicated by the number of PlexCrowns, incorporate returns, standard risk measurements, downside risk and managerial skill.”

According to the survey, Aviva achieved a total of 3.75 PlexCrowns out of a maximum of five. The company held a superior position in the total fixed interest category and also showed that its strength lies in UK and Europe equity.

Hot on Aviva’s heels was Investec, the runner-up in the overall ranking with 3.74 PlexCrowns. The company achieved joint first place in global asset allocation, fourth place in total equity and an average rating in total fixed interest. It excelled in its equity management in the Far East, Japan and UK.

Lloyds was placed third with 2.93 PlexCrowns. The investment house was followed by STANLIB, TriAlpha, Investment Solutions and Nedgroup Investments International.

Although not qualifying for an overall rating, Ashburton, Sarasin and Allan Gray deserve a mention. Ashburton excelled in most areas in which it competed. The company shared first place in global asset allocation and took third spot in total equity, topping the rankings in US equity and UK equity. It achieved a joint second spot in equity – general.

Sarasin topped the ratings in total equity and achieved a fourth place in global asset allocation. Allan Gray was runner-up in total equity, with a joint first place in Japan equity.

“PlexCrown ratings are done according to guidelines set by the Association of Collective Investment Schemes,” says de Klerk. In the survey, 99 of the 148 FSB-approved offshore funds were rated.

Offshore fund managers are also rated on an overall basis, taking into account the weighted average of their funds’ ratings in the categories total equity, total fixed interest and global asset allocation. An offshore manager must have funds in the total equity and total fixed interest category to receive an overall rating.

“Most South Africans agree that investing offshore is an essential element of a sound overall investment strategy,” says De Klerk. “However, deciding where and with whom to invest is often a daunting task. The PlexCrown survey is a valuable tool to assist investors and financial advisors to make an informed investment decision.”

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

Aviva and Investec came out tops for their proficiency in managing equity and fixed interest funds during the second quarter.