The Profile Group will launch a new set of awards to recognise performance by actively managed collective investment schemes after ending its long-standing media partnership with Personal Finance.
The Profile Group has also stopped providing financial data to other publications owned by Independent Media.
Ernie Alexander, the chairman of the Profile Group, told Moonstone that his company decided to end its relationship with Independent for commercial reasons.
The Raging Bull Awards have been presented annually since they were established by the founding editor of Personal Finance, Bruce Cameron, in 1997. The awards ceremony has been regarded a key event on the South African investment industry’s calendar. The awards and certificates recognising performance to the end of December last year were presented in March.
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Until this year, the Profile Group’s subsidiaries, Profile Data and PlexCrown Fund Ratings, have provided the data and performed the calculations used to determine the awards and certificates.
The PlexCrown methodology, which incorporates risk-adjusted returns and consistency of performance, was used to rate and rank funds for the awards for risk-adjusted performance over five years. The PlexCrown rating methodology was also used to determine the Raging Bull Awards for the South African and offshore management companies of the year.
Profile Group issued a statement last week announcing its intention to establish a new award, whose name has yet to be decided.
“The unit trust industry, which began in 1965 with the launch of the Sage Fund, has grown exponentially. By the 1990s, industry research houses in South Africa were awarding funds for superior performance. The number of funds has since surged, reflecting the market’s rapid maturation. Today, South African rand investors have access to more than 1 800 local and over 500 offshore funds, demonstrating the industry’s expansive growth,” the statement said.
“It is worth noting that in the calculation of the award winners, performance methodologies used by data providers may vary slightly, and even a marginal difference in returns can yield different winners. To add to the potential mix, research houses have introduced awards that are calculated on a risk-adjusted basis.”
The Profile Group said “a refreshed awards programme” will be designed to reflect the industry’s transformation and “our commitment to adapting in this ever-changing landscape. While the core principle of rewarding funds for the best returns remains unchanged, modifications will incorporate recent market developments to ensure the awards reflect the current investment environment accurately.”
In the meantime, the Profile Group is also introducing a quarterly feature called “The Running of the Bulls”, which will spotlight funds leading in selected ASISA and offshore categories.
Alexander said the first Running of the Bulls will be published this month, providing performance for the quarter to the end of June. The next one will be published in October (for performance to the end of September). The calculations for the new awards will be performed in December, and the awards will be presented in early 2025.
He said the purpose of The Running of the Bulls is to make the determination of the awards more transparent – the industry can see from quarter to quarter which funds are providing superior performance in terms of the awards’ methodology.
To further enhance transparency, the Profile Group will soon publish a comprehensive set of award rules. Profile said it will welcome feedback and comments from industry stakeholders, “to foster collaboration and inclusivity in the awards process”.
Asked whether the new awards will, like the Raging Bull Awards, recognise straight and risk-adjusted performance, Alexander said both will be considered.
Philippa Larkin, the executive editor of Business Report and Personal Finance, told Moonstone that Independent Media will continue to host the Raging Bull Awards, for which the company owns the rights and patents.
Independent Media is set to sign an agreement with a “more recognised” data provider, which will design an improved methodology that will be welcomed by the industry, Larkin said.
