Allan Gray is the top-performing unit trust management company for the period ended June 30, 2008 in terms of the PlexCrown rating system.
The system takes into account numerous factors, including consistency and sustainability of performance and risk factors over numerous periods of all the qualifying unit trust funds managed by a management company.
Investec headed the PlexCrown ratings for domestic funds, with Allan Gray coming second, followed by Prudential, Oasis and Stanlib.
Allan Gray was top of the list in the foreign category, followed by Coris, Stanlib, RMB and Investec.
The combination of its first place with foreign funds and its second place with local funds gave Allan Gray the overall victory. It was followed by Investec, Prudential, Stanlib and RMB.
The two highest-ranking managers of domestic equity funds were Indequity and Valugro, with five PlexCrowns each.
Managers that received five PlexCrowns were:
- Allan Gray and Community Growth for the management of domestic fixed interest funds;
- Investec, RCI and Rezco for domestic asset allocation funds;
- Investec and Valugro for domestic real estate funds;
- Coris for foreign fixed interest funds; and
- Allan Gray for foreign and worldwide flexible funds.
In the foreign equity sector, Stanlib was top, with 4.5 PlexCrowns.
Di Turpin, the chief executive of the Association of Collective Investments, says net inflows into collective investments (unit trusts and exchange-traded funds) rebounded in the quarter to June, reaching the R10-billion mark from R3.9 billion in the previous three months. Market assets dipped slightly to R656 billion from R659 billion on the back of volatile market conditions.
Turpin says inflows to domestic asset allocation funds were a feature of the past quarter, with increased investments in the prudential low, variable equity, and targeted absolute and real return fund sectors. The sectors to show outflows included general equity, real estate and bond.
Turpin says the inflows are encouraging given the highly volatile markets in the wake of the sub-prime mortgage crisis, and soaring oil prices and interest rates.
"They are still below the R15-billion inflow in June last year but are well above the December quarter's R8 billion. Flows have remained positive thus far through this difficult period for the markets, suggesting investors recognise that collective investments are long-term investments.
"Inflows into equities are down by R1.4 billion, but this compares with a R6.6-billion outflow in March, with money market again being a popular sector in view of the high returns reflecting current interest rates."
Turpin says investors should maintain their monthly debit orders in line with their financial plans and be well diversified across the market. On a three- to five-year outlook, many sectors historically look attractive. Some analysts are predicting a correction in commodities after their steep rise, but non-commodity sectors, such as financials, are appealing on a long-term view.