According to Patrick Cairns of Citywire “it’s been a tough old time for local fund managers” as the latest Citywire fund manager ratings indicated that South African managers have done noticeably worse than their global counterparts over the past three years.
“Citywire uses the information ratio to rank managers every month. This is defined as a manager’s annualised excess return, divided by their tracking error against an appropriate benchmark. This provides a measure of risk-adjusted performance,” Cairns writes. He points out that delivering risk-adjusted performance has certainly not been impossible as evidenced by the ratio of 0.98 achieved by South Africa’s highest-rated manager, AA-rated Jacobus Lacock. Lacock co-manages the Fairtree Balanced Prescient fund, with Stephen Brown. The fund has returned 35.1% over the past three years, against a category average of just 12%.
In a recent Citywire article, Lacock shares his views on the current environment and some of the key drivers that he expects to influence markets over the next year and a half.
Click here to read more about what he sees as the opportunities in the next 12-18 months, his view on the rand as well as what the impact of the $4.3bn loan from the IMF will have on our markets.