The Coronation Global Equity Select Fund is a fund that invests in equities internationally. However, the fund is more biased towards stocks that are in developed countries. The fund dedicates upwards of 70% to investing in shares of companies that are in the developed world.
The fund can also invest in shares from countries that are in emerging markets. Equities that can be held as per the fund’s mandate are 30% of the total portfolio. Investments in emerging markets and developed countries may overlap the recommended thresholds from time to time so that the fund can meet its objectives.
The fund aims for the portfolio to be composed of shares alone. However, this may not always be the case. The fund is allowed to allocate some of its portfolio holdings to bonds and cash. The fund is allowed to hold up to 20% of its portfolio in cash and bonds.
It is clear from the information above that the fund focuses mostly on its financial resources on investing in companies in developed countries. In doing so, the fund faces fluctuations that are likely to affect short-term investors. The fund recommends that an investment in the fund be for a period of 10 years or more.
The speculative investor is likely to put his or her capital at risk. As such, the fund recommends those who want to invest for 3 years or less should look for other funds such as the Coronation Strategic Income Fund.
The fund aims to provide long-term capital growth, as achieving those results may decrease the value of the investment over the short term. Therefore, one must truly understand the fund before investing in it as it is not suitable for any investor.
We provide a detailed analysis of the fund below to aid you in understanding the fund.
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The Coronation Global Equity Select Fund is a unit trust that invests in equities in the developing and developed world. The fund doesn’t invest in South African equities. To get started with the Coronation Global Equity Select Fund, an investment of $15,000.00 or more is required.
The money invested in the fund will be used to buy units in the fund. As of 2022, the Coronation Global Equity Select Fund is valued at $288.49 million. The fund has the MSCI All Country World Index as its benchmark and tries to outperform or at least match it.
An investment in the fund will be determined by the earnings from the investments made through the fund. The fund has managed to grow slowly but surely since its inception. The fund was launched on January 30, 2015, and since its launch, the fund has managed to grow by 31.3%.
On average, the fund grew by 3.8% annually as compared to the benchmark’s annual growth of 8.6%. Since the fund’s inception, the benchmark has managed to grow by 82.7%. It is clear that the fund hasn’t managed to outperform the benchmark since it was first launched.
The biggest drawback of the fund is the highest annual decrease that it has ever recorded, which took place between May 2021 and April 2022, a 26.4% decline. Since the fund recommends that investors have a long-term investment in mind, the fund is only just having its downs, which it will recover from.
The fund’s assets are allocated to various companies across the world. Below, we showcase the fund’s asset exposure per continent.
|Geographic location||Fund exposure in percentage|
The fund has most of its investments in North America and has a vast holding in technology companies. The fund, as of 2022, has invested all of its portfolios in equities. Therefore, 100% of the fund is held in shares.
To better understand the fund’s composition, we list the top 10 holdings that it has. The list is as follows.
|#||Company Name||Fund percentage|
|1||Canadian Pacific Railway Ltd||6.1%|
|2||Charter Communication A||5.2%|
|5||JD.com Inc Adr||4.4%|
|8||Canadian National Railway Co||3.4%|
|10||Meta Platforms Inc||2.7%|
The fund has seen a very high level of success since it was launched in late 2021. This is mainly attributed to the fall of tech stocks such as Meta, Netflix, and more. This has created a huge loss to the value of the fund.
However, the fund is intended to attract investors who want to invest over a longer period of time, preferably 10 or more years. Such long-term investments are likely to gain more value since the fund is able to absorb market losses that are created over the short run.
The Coronation Global Equity Select Fund has high potential and is still new. An investment in the fund has high hopes of earning high interest as per historic data. And since the benchmark has managed to perform exceptionally well, the fund will follow suit.