Categories: InvestingNewsReviews

Coronation Global Opportunities Equity ZAR Feeder fund review 2022

Published by
Lethabo Ntsoane

The Coronation Global Opportunities Equity ZAR feeder fund invests in other funds that invest in global stocks. The fund makes investments in other funds that own equity holdings in nations such as the US and Japan. Funds that invest in developing nations as well as funds that invest in European shares are prioritized.

The MSCI All Country index, which is a challenging index for any fund to follow, is used as the benchmark for the product. The fund uses its six to ten strategies, which are chosen based on their value, to carry out its mandate. The track record of each strategy in terms of beating the market, its investment philosophies, and the caliber of its fund managers are seen as indicators of its value.

According to Coronation’s risk profile, the fund has an 8/10 rating and is classified as an aggressive investment. The rating is based on the likelihood of temporary losses and the fund’s volatility. Investors must therefore have a long-term investment perspective in mind while making investments in the fund.

The fund has defined objectives, thus it is undoubtedly not for everyone. It is essential to know the portfolio’s fund managers because they have the ability to make or break the investment. However, due to the confidence in Coronation Fund Managers, portfolio investments may be viewed as being in good hands (Tony Gibson and Karl Leinberger).

In comparison to a fund that invests directly in stock, the multi-managed fund frequently produces lesser returns. In exchange for using Coronation Fund Managers’ platform, the fund pays them an annual fee of 0.85 %. Additional charges levied by the fund include transaction costs and fund expenses.

The multi-managed fund has a history of volatility. We take our time to critically analyze the fund because it has such ingrained characteristics. It is further covered in more detail below.

Coronation Global Opportunities Equity ZAR feeder fund summary

The Coronation Global Opportunities Equity ZAR feeder fund is a unit trust that requires a minimum investment of R5,000.00 once off. If you are unable to make a one-time contribution, you can opt to contribute R500 per month instead. The money from this investment will be used to purchase units of the fund.

The majority of the fund’s holdings are US, European, and Japanese funds that invest in global equities. Each unit of the fund, which is now valued at R6.85 billion, costs R149.07. As a result, Coronation handles the fund as one of the most valued funds.

Since its beginning, the fund has made wise investments. The fund was formally established on August 1st, 1997, and has grown by 1508.2 % since then. Accordingly, the fund has grown an average of 11.8 % per year since 1997.

The MSCI All Country World index benchmark that the fund follows saw a growth of 1493.8 % during the same time period. The benchmark experiences an average annual growth of 11.8 %. Thus indicating how the fund has managed to match and in some years surpass the benchmark. 

Due to its yearly growth rate of 11.8%, which is higher than the average inflation rate of 7.9%, the fund offers investors returns that are above average. Because of its volatility, the fund is classified as an aggressive fund.

We examine some of the years where the fund underperformed and outperformed to demonstrate the fund’s volatility. The fund’s 36.1 % annual low-performance mark was attained between October 2002 and September 2003. In addition, the fund achieved an annual performance record-breaking 66.2 % between April 1998 and March 2000.

The record highs and lows of the fund are relatively high, therefore short-term investors may run the danger of losing money. As a result, making long-term investments can help one receive favorable returns and so attain the best results.

Most of the assets in the fund are made up of stocks. The assets that the fund invests in are listed below to assist you in better understanding the makeup of the fund’s assets.

Coronation Global Opportunities Equity ZAR feeder fund

ASSETPORTFOLIO PERCENTAGE
Equities:
      Global (7 funds) 95.5%
Equity futures 4.23%
Cash0.27%

The fund holds 0.27 % of its assets in cash, which represents a portion of its holdings. In order for the fund to achieve its goals, the assets it invests in may change over time. The majority of the assets that the fund invests in are funds.

The Coronation Global Opportunities Equity ZAR feeder fund invests in the funds listed below. Below is a list of all available funding.

Top 10 holdings of the Coronation Global Opportunities Equity ZAR feeder fund

#Fund/Equity Fund percentage
1Edgerton capital equity18.79%
2Contrarius global eq-inst B15.02%
3Tremblant cap ge strat13.47%
4Coro global EM MT FD CLZ USD11.38%
5Cimi global opportunities equity strategy 10.88%
6Select equity group10.84%
7Lansdowne capital ge strategies 10.36%
8S & P 500 emini fut5.67%
9Cimi2 proprietary global opportunities 2.74%
10Other securities held by the fund0.60%

Advantages of the Coronation Global Opportunities Equity ZAR feeder fund

  • There are two ways to make contributions to the fund.
  • Long-term investments tend to generate high interest.
  • Minimum contributions allowed are low for both options.
  • The fund is managed by Coronation and doesn’t require an investor to manage investments.
  • The fund is able to outperform or match its benchmark from time to time.

Disadvantages of the Coronation Global Opportunities Equity ZAR feeder fund

  • The fund is not Regulation 28 compliant. Retirement investments cannot be made using the fund.
  • Short-term investments risk the loss of capital.

Conclusion

Anyone who wants to invest and is aware of the fund’s volatility can use the Coronation Global Opportunities Equity ZAR feeder fund. Since these fluctuations are inevitable when pursuing long-term capital growth, they must not be met with hostility.

Share
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
%%footer%%