This Coronation feeder fund is among the safest that Coronation Fund Managers has to offer. The Coronation Global Capital Plus [ZAR] feeder fund makes investments in overseas assets aside from South African ones. The fund aims to secure funds in the short- to medium-term while offering significant long-term profits.
The Coronation Global Capital Plus [ZAR] feeder fund is designed for cautious investors who want to put their money into a fund that only invests in international assets and doesn’t take many risks when buying stocks. Because this is where the fund invests most of its money, industrialized countries account for the majority of its holdings. The fund is also required to invest in emerging markets.
The fund has a Coronation rating of 6 out of 10 and is categorized as a moderate investment. This is a result of the investing strategy used by the fund. The fund must invest 50% of its total assets in growth assets and 50% of its total assets in income assets. As a result, the investment is much more evenly distributed.
For the best returns on their investments, Coronation advises investors to hold their investments for at least 3 years. For a fund that wishes to keep capital contributions, the fund has established an aggressive benchmark. The fund aspires to outperform an investment in the developed market over any 5-year period and preserve money over any 12-month period.
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The managers of the fund must use money appropriately to guarantee that the mandate is carried out as intended. The fund uses experienced fund managers to carry out its mission. The fund managers need to be paid for their efforts.
The fund levies a 1.25% annual management fee. Given that the fund is a feeder fund, this sum will be paid in two installments. The first 0.4% of the 1.25% are collected at the feeder level, and the latter 0.85% are collected at the master fund level.
The fund also charges additional fees. Charges for fund expenditures are made, and they are estimated at 0.1% + VAT. In addition, there are transaction costs associated with using the fund. The cost paid by the fund is 0.6%.
The Coronation Global Capital Plus [ZAR] feeder fund has many opportunities for a conservative investor. In the next chapter, we will cover some of the interesting statistics about the fund. The fund is discussed in greater detail below.
A unit trust called the Coronation Global Capital Plus [ZAR] feeder fund invests in a variety of assets in both developed and developing economies. The fund has a preference for investing in developed market assets and also holds a sizable amount of equities. A minimum investment of R5,000.00 or R500.00 per month on a debit order is needed to start investing in the fund.
The fund has a cost of R3.04 per unit and a current value of R3.28 billion. The Secured Overnight Financing Rate (SOFR) + 1.5 % has been chosen as the fund’s benchmark. The fund has been able to perform better than its benchmark.
Since its introduction on November 1, 2008, the fund has increased by 192.5 %, with an average annual growth rate of 8.2%. The benchmark, on the other hand, has increased by 108.1 % and has an average yearly growth of 5.5 %. On average annually, the portfolio has exceeded the benchmark by 2.7%.
The fund not only outperformed the benchmark, but it also outperformed the 7.9 % inflation rate observed on average in South Africa. If an investor wants to see favourable returns on their investment, Coronation advises investing for at least three years.
Low rates of volatility are offered by the fund. For instance, the fund experienced its largest annual decline ever between June 2020 and May 2022, falling by 11.9 %. The fund also experienced a 34.8% annual growth rate that was a record high between June 2012 and May 2013.
When compared to the volatility of a focused fund, these ups and downs are mild. We have included the fund’s investments in order to provide a better understanding of the fund and to show why the fund doesn’t experience high or low volatility. The assets are displayed below.
|High Yield Bonds||8.4%|
|T – Bills||18.6%|
The majority of the Coronation Global Capital Plus [ZAR] feeder fund, or 69.9% of the total, is invested in fixed income and equity. While investments in equities offer substantial returns on investment, fixed income gives the fund the stability it needs to safeguard the cash. The fund can be applied for on the Coronation website.
Investment in equities is always crucial to comprehending the fund. The fund’s top ten corporate holdings are listed below. The list is provided below.
|#||Company Name||Fund percentage|
|2||National Grid Plc||1.4%|
|3||51 Job Inc Adr||1.3%|
|5||British American Tobacco||1.2%|
|7||World Quantum Growth Acquisi||1.1%|
|8||Carter Communication A||1%|
|10||Canadian Pacific Railway Ltd||1%|
The Coronation Global Capital Plus [ZAR] feeder fund provides an opportunity for a conservative investor to invest in a fund that invests in a number of asset classes. An investment in the fund is kept in ZAR, which is the base currency of the fund. For those that want to invest in a similar fund that invests in USD, the Coronation Global Capital Plus Fund (houseview currency) can be used.