Morningstar’s latest quarterly fund manager ratings show that Allan Gray has maintained its position as South Africa’s most consistent fund manager. Across its range of funds, the firm recorded the highest average Morningstar rating.
These ratings are based on the risk-adjusted returns of local funds, providing a measure of past performance. As Morningstar notes, this means that a manager’s overall rating is “not designed as a forward-looking tool and does not indicate the future positioning of asset managers”. It is only “intended for use as the first step in the fund evaluation process”.
Whether using the asset-weighted rating, which takes into account the sizes of different funds, or the equal-weighted rating, Allan Gray comes out on top. It is the only fund manager in the country to have all its funds rated at least four out of five stars in Morningstar’s analysis.
On an asset-weighted basis, Prescient moved into second place on the Morningstar rating. The company scored highest for its fixed income and asset allocation (or multi-asset funds), although its equity offering has not performed as well.
Prudential slipped from second to third, even though 96% of its assets under management are held in funds with at least a four star rating. It performed strongest in the asset allocation category.
Using the equal-weighted rating, Nedgroup Investments moved into second spot behind Allan Gray. This is despite just 64% of its assets under management being in four and five star rated funds. On an asset-weighted basis the company was only in 11th place.
Nedgroup Investments’ best performance was amongst its asset allocation funds.
Third on the equal-weighted rating was PSG Multi-Management. It scored well across the equity, fixed income and asset allocation categories.
The full Morningstar asset manager ratings can be downloaded here.