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Coronation Global Managed fund review 2022

Published by
Lethabo Ntsoane

The Coronation Global Managed fund is a unit trust created for investors who desire to increase their wealth by contributing to a fund that invests in international investments. The fund has a preference for stock investments. It has the option to invest in additional assets as well, including bonds, cash, and real estate. Although it also invests in emerging countries, this fund mostly invests in established economies.

At all times, the Coronation Global Managed fund aspires to invest entirely in international markets. All of the fund’s investments are made overseas as of 2022. This USD-denominated product has the 60% MSCI All Country World Index and the 40% Barclays Global Bond Aggregate as its benchmark. The benchmark followed is very ambitious and tends to outperform the fund at times. 

At the very least, a medium-term investment should be made in the fund. Long-term investments in the fund are nevertheless recommended as losses on investments made for the short term are common. An investor should be acquainted with these variations.

Investors shouldn’t attempt to take immediate cash out of their investments. Such short-term withdrawals may tend to have a negative long-term impact on the fund since the volatility of the fund may cause it to deplete much more quickly than expected.Those that want to invest in a fund that accommodates short-term investments should check some of the unit trusts offered by Coronation such as the Coronation Strategic Income Fund

An investment in the Coronation Global Managed fund provides investors with the potential to earn high returns over time. We will provide you with more information regarding the fund, including fun facts about the fund in greater detail below. 

Coronation Global Managed fund summary

The Coronation Global Managed fund is a unit trust that was launched on the 1st of March 2010. As of 2022, the fund is valued at $878.13 million. A unit trust called Coronation Global Managed fund debuted on March 1st, 2010. The fund is worth $878.13 million as of 2022. The Coronation Global Managed fund requires a minimum initial commitment of $15,000.00 to get started. Investors are urged by the fund to commit for at least five years.

Neil Padoa, Humaira Surve, and Louis Stassen are the fund’s managers, and JP Morgan serves as its trustee. The fund is being managed by managers in accordance with the mandate. The managers will require payment for their labour. A 1.25 % management fee is charged for investment in the fund. Fund expenses and transaction fees are examples of other fees that the fund charges.

The fund has managed to perform well since it was launched. The fund has managed to record a total growth of 84.1% since its inception. This means that the fund has increased by 5.1% since its inception. However, the fund has failed to  outperform the benchmark which grew by 114.7% since the fund’s inception. 

The fund may have been outperformed by the benchmark, but it still performed well. This is considering that the fund has a long-term investment in prospect. The fund is still young and it has the potential to grow. 

Looking at the volatility of the fund, the fund is not volatile like a fund that only invests in shares. Its highs and lows so far have been moderate and not in any way extreme. Therefore, the fund can be deemed to have a moderate risk. 

The fund has had an all-time annual decrease of 16.3% which was achieved between June 2021 to May 2022. On the other hand, the fund has recorded an annual all-time increase of 34.6%, a feat which was achieved from April 2021 to May 2021. 

The fund’s lows and highs are clearly not extreme. Equally, the fund is able to move away from downturns in a very short space of time. The fund can, therefore, easily absorb any short-term losses through short to medium-term increases. 

The fund invests in many assets to achieve its objectives. We look at the assets that the fund invests in below. 

Coronation Global Managed fund Asset Allocation 2022

ASSETPORTFOLIO PERCENTAGE
Equities69.4%
Infrastructure 5%
Property 2.6%
Convertible Bonds1.6%
High Yield Bonds5.8%
Commodities 4.7%
Merger Arbitrage2.6%
FIXED INCOME2.8%
T-Bills1.4%
Inflation break – evens0.3%
Investment Grade1.1%
Cash5.5%

The fund is heavily invested in equities, which hold the majority of the portfolio at 69.4%. Cash also makes up the majority of the portfolio, with 5.5% of the portfolio composed of cash. Note that investments in the fund are made in foreign assets. 

To better understand where the fund invests, we have compiled a list of the top 5 holdings that the company has. We have only listed entities where the fund holds equities.  

Top 10 holdings of the Coronation Global Managed fund

#Company NameFund percentage
1Canadian Pacific Railway Ltd3.4%
2Alphabet Inc3.3%
3Charter Communication A3.2%
4British American Tobacco2.8%
5Visa Inc2.8%
6JD.com Inc Adr2.6%
7Amazon.com Inc2.6%
8Vinci SA2.2%
9Prosus SA2.2%
10Canadian National Railway Co1.9%

Advantages of the Coronation Global Managed fund

  • The fund provides steady returns over a 5 year period.
  • The fund sometimes outperforms its set benchmark.
  • Long-term investments of more than 5 years tend to get better returns than short-term investments.
  • The fund invests in multiple assets which makes the fund more stable than a fund that only invests in equities.
  • Fees that are charged for the management of the fund are low considering the number of returns.

Disadvantages of the Coronation Global Managed fund

  • The fund doesn’t secure capital, therefore, investors will need to plan their investment.
  • Retirement investments cannot be made using the fund since it is 100% invested offshore.
  • Only those with large amounts to invest can invest in the fund since the minimum requirement is high.

Conclusion

The Coronation Global Managed fund is best suited for someone that wants to invest in a fund that invests globally and all assets are held in USD. The fund invests in different assets across the world and it is more stable than a fund that only invests in equities. Returns on the fund are moderate since the fund provides limited risk for the short-term investor. 

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
Tags: Coronation
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