SA’s best and worst unit trusts: Find out whether you picked a winner here

If you invested in a specialist gold fund over the past three months, most likely you would be a very happy investor. Gold has benefited from events like the Brexit decision in the UK, translating into double-digit returns not far off 20% for investors in South Africa’s top-performing unit trust for the second quarter, the Old Mutual Gold Fund.

Investors who took the decision a year ago to diversify rand-based assets by investing in the Argon Worldwide Flexible Fund must also be smiling, with this fund more than doubling a lump sum over 12 months, according to the second-quarter PlexCrown Fund Ratings.

Another unit trust fund at the top of the league table worth noting is the Investec Value Fund, managed by an asset manager who is undoubtedly among South Africa’s best: John Biccard.

Although his fund has registered impressive short-term returns, Biccard looks for out-of-favour, undervalued stocks with a view to generating long-term outperformance. Dogs this quarter include trackers matching South Africa’s financial services sector and European stocks. – Jackie Cameron

From Plexcrown.co.za

Developed markets outside the US returned minus 0.79% in US dollars and minus 0.08% in local currencies. Emerging markets as measured by the MSCI Emerging Market Index returned 0.80% in US dollars with dividends reinvested, and 0.83% in local currencies. The US equity market (S&P 500 Composite Index) returned 2.46% with dividends reinvested.

The FTSE/JSE All Share Index (ALSI) returned 0.12% in US dollars and 0.44% in rand as the US dollar gained some ground against the local currency. Based on investments a year ago, developed and emerging market equities as measured by the MSCI World Index and MSCI Emerging Market Index returned minus 2.19% and minus 11.71% in US dollars respectively.

South African subcategories again led the charge in the second quarter of 2016.

Old Mutual Gold Fund A was the best-performing fund in the second quarter of 2016 with a return of 18.89% with income distributions reinvested, and was followed by Argon BCI Worldwide Flexible Fund A and Investec Value Fund A with 14.19% and 12.15% respectively.

Argon BCI Worldwide Flexible Fund A was the best-performing fund over one year with a total return of 116.03%, income distributions reinvested.

Best and worst unit trusts over three months

Prescient China Balanced Feeder Fund A1 and Absa Property Equity Fund A topped the charts over three years. The passively managed db x-trackers MSCI USA Index ETF was the leading fund over five years, followed by the actively managed Old Mutual Global Equity Fund A.

The passively managed Satrix INDI ETF was the best- performing fund over ten years, while Coronation Industrial Fund and SIM Industrial Fund were the top- performing actively managed South African funds over the same period.

At the end of June 2016, 526 funds were rated compared to 510 funds at the end of March 2016. Eighteen funds were rated for the first time while two lost their ratings. The ratings of 381 (75%) of the funds were unchanged, while 25% of the funds experienced minor rating changes. One fund received a major upgrade while another fund received a major downgrade.

Asset managers: Top five

Allan Gray retained its position as the leading domestic CIS management company at the end of June 2016. Allan Gray’s overall rating decreased slightly to 4.304 PlexCrowns from 4.306 in the first quarter. The investment house’s top rating was characterised by solid investment proficiencies across all the broad asset classes.

The company shared the third place in the broad South African Equity & Real Estate category with 4.000 PlexCrowns and was ranked third in the broad Global & Worldwide category with 4.283 PlexCrowns.

Allan Gray had the third-highest ranking in the broad South African Multi-asset Non-Income category with 4.738 PlexCrowns and house shared the fourth place in the broad South African Interest Bearing & Income category with 4.000 PlexCrowns.

Six (75%) of Allan Gray’s 8 rated funds had above-average ratings of 4 or more PlexCrowns, while Allan Gray-Orbis Global Fund of Funds A and Allan Gray Balanced Fund A achieved 5 PlexCrowns.

Allan Gray-Orbis Global Fund of Funds A was the top-rated fund in the Global–Multi Asset–High Equity subcategory and Allan Gray Balanced Fund A ended the quarter in second spot in the South African–Multi Asset–High Equity subcategory.

Nedgroup Investments was runner-up to Allan Gray at the end of the second quarter of 2016. Nedgroup Investments’ overall rating declined slightly to 3.909 from 3.972 PlexCrowns in March 2016.

The investment house was in third place in the broad South African Interest Bearing & Income category with 4.326 PlexCrowns, shared the fifth spot in the Global & Worldwide category with 4.000 PlexCrowns and had the sixth-highest ranking in the broad South African Multi-asset Non-Income category with 4.092 PlexCrowns.

Fourteen (70%) of Nedgroup Investments’ 20 rated funds had above-average ratings of 4 or more PlexCrowns, while seven funds achieved 5 PlexCrowns, namely Nedgroup Investments Financials Fund A, NGI Private Wealth Equity Fund A, Nedgroup Investments Entrepreneur Fund A, Nedgroup Investments Core Diversified Fund B, Nedgroup Investments Flexible Income Fund A, Nedgroup Investments Core Guarded Fund B and Nedgroup Investments Opportunity Fund A.

Nedgroup Investments Entrepreneur Fund, NGI Private Wealth Equity Fund A and Nedgroup Investments Financials Fund were the top-rated funds in their respective subcategories. Nedgroup Investments Global Cautious Feeder Fund A, Nedgroup Investments Flexible Income Fund A and Nedgroup Investments Mining & Resources Fund were runners-up in their subcategories.

Nedgroup Investments Opportunity Fund A achieved its maiden rating and was ranked second in the South African–Multi Asset– Medium Equity subcategory.

Marriott continued to climb up the ladder and held the third-highest management company rating at the end of the second quarter of 2016. Marriott’s overall rating improved to 3.743 PlexCrowns from 3.397 PlexCrowns in the first quarter and up from 3.046 PlexCrowns at the end of 2015 when it was ranked eleventh overall.

Marriott had the second-highest rating in the broad South African Equity & Real Estate category with 4.675 PlexCrowns. The investment house also had the second-highest rating of 4.304 PlexCrowns in the broad Global & Worldwide category. Six (50%) of Marriott’s 12 rated funds had above-average ratings of 4 or more PlexCrowns.

Marriott Global Income Fund A and Marriott International Growth Feeder Fund A were the leading funds in their respective subcategories. Marriott Worldwide Flexible Fund of Funds A was runner-up in the Worldwide Multi Asset Flexible subcategory.

Investec GSF Global Gold Fund A Acc was the best-performing FSB-approved offshore fund in the past quarter with a return of 37.43% in SA rand with income reinvested. The fund was also the top performer over one year while Ashburton India Equity Opportunities Fund was the leading fund over three years. Franklin Biotechnology Discovery Fund was the leading fund over five and ten years.

Best managers: Approved offshore funds

Nedgroup Investments was the leading FCIS management company in the second quarter of 2016 with an overall rating of 5.000 PlexCrowns. Nedgroup Investments topped the charts in the broad Equity & Real Estate category with 5.000 PlexCrowns and shared the top spot with ACPI and Marriott in the broad Offshore Asset Allocation category 5.000 PlexCrowns.

All three of Nedgroup Investments’ rated funds achieved ratings of 5 PlexCrowns while Nedgroup Investments Global Cautious Fund had the highest ranking in the Global–Asset Allocation–Flexible category.

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