Morningstar Announces 2020 South Africa Fund Award Winners

By Janice Roberts
Editor

Independent investment research company Morningstar Research (Pty) Limited, a subsidiary of Morningstar, Inc. has named the winners of its 2020 South Africa Fund Awards.

Kagiso won two awards – for Best Aggressive Allocation Fund and Best South Africa Equity Fund – while Investec scooped Best Fund House: Larger Fund Range award and Fairtree won Best Fund House: Smaller Fund Range.

The annual Morningstar South Africa Fund Awards recognise funds and fund houses that added the most value for investors within the context of their relevant peer group in 2019 and over longer time periods. Morningstar selects the finalists using a quantitative methodology with a qualitative overlay that considers the one-, three-, and five-year performance history of all eligible funds, and adjusts returns for risk using Morningstar Risk, a measure that imposes a higher penalty for downside variation in a fund’s return than it does for upside volatility. 

“The winners of this year’s South Africa Fund Awards demonstrate the value of a solid long-term investment strategy at a time when domestic and international markets are battling turbulent macro-economic and political headwinds,” said Tal Nieburg, Managing Director for Morningstar South Africa. “The winning funds and fund houses demonstrated the ability to earn strong risk-adjusted returns for investors over a sustained period while avoiding undue risk.”

The winners for the 2020 Morningstar South Africa Fund Awards are:

FUND CATEGORY AWARDS: WINNERS:

Best Aggressive Allocation Fund Kagiso Balanced
 
Best Bond Fund Allan Gray Bond
 
Best Cautious Allocation Fund ABSA Inflation Beater
 
Best Flexible Allocation Fund Select BCI Worldwide Flexible
 
Best Global Equity Fund Nedgroup Global Equity
 
Best Moderate Allocation Fund Sasfin BCI Balanced
 
Best South Africa Equity Fund Kagiso Equity Alpha
 
FUND HOUSE AWARDS:
WINNERS:

Best Fund House: Larger Fund Range Investec Asset Management
 
Best Fund House: Smaller Fund Range Fairtree Asset Management
 

The Morningstar fund category and fund house awards are based on Morningstar fund data as at 31 December 2018. The awards methodology emphasises the one-year period, but funds must also have delivered strong three- and five-year returns after adjusting for risk within the award peer groups in order to obtain an award. In selecting winners, fund returns are adjusted for risk using Morningstar Risk, a measure which imposes a higher penalty for downside variation in a fund’s return than it does for upside volatility. 

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