The Coronation Jibar Plus Fund invests in money market instruments and provides stable growth for investments. The fund has low rate volatility and is able to move out from low performances at a very quick rate. This is because the fund invests in money markets that provide returns that are mostly guaranteed.
The Coronation Jibar Plus Fund is suitable for those that want capital protection. However, investors that invest in the fund should target short-term capital growth. For investments for the long term, Coronation has a range of long-term investments that are able to provide better returns, such as the Coronation Balanced Plus Fund, with some averaging over a 10% increase per annum.
The Coronation Jibar Plus Fund makes investments in money market instruments and offers consistent returns on capital. The fund is able to recover quickly from poor results and has a low rate of volatility. This is due to the fund’s investments in money markets, where returns are essentially assured.
Investors seeking capital protection can choose the Coronation Jibar Plus Fund. The fund’s investors should aim for short-term capital growth. When it comes to long-term investments, Coronation has a selection that can deliver superior returns, with some of them averaging over 10% growth annually.
The Coronation Jibar Plus Fund is mostly purchased for precautionary reasons. Even though the fund earns interest, it is only suitable for short-term investments, so conservative investors can gain from investing in the fund.
Continue reading as we analyze the fund in more detail to make sure you have a better understanding of it. The fund is covered in more detail below.
Coronation Jibar Plus Fund summary
Coronation Jibar Plus Fund is a unit trust with a R2.15 billion fund size and a unit price of R11.08. The Jibar Plus Fund requires a monthly debit order contribution of R500.00 or a one-time investment of R5,000.00 to invest.
The fund’s benchmark is the Alexander Forbes STeFI 3 months index. Since its inception, the fund has averaged an increase of 8.5% compared to the benchmark’s 7.4%.
Since it was established 22 years ago, the fund has consistently outperformed its benchmark. The fund’s growth as of 2023 amounted to 542.5%or an average annual raise of 8.5%. The benchmark managed to grow by 411.2% throughout that time, which works out to an average yearly growth rate of 7.4%.
Market imperfections are capable of being absorbed by the Coronation Jibar Plus Fund. The fund’s lows, which it has managed to document, demonstrate this. The fund’s lowest lows have only been 0.30 %. It is famous for its highs; historically, it reached a peak of 179.5% at one point, although its yearly high is only 18.60 %.
These success rates would not be feasible if the fund was managed differently. The portfolio of the fund is made up of the following investments:
- Banks and Insurers: NCDs and Deposits, which account for 60.7%,
- Banks: Senior Debt, which accounts for 22% of the portfolio,
- REITS which accounts for 4% of the fund portfolio,
- Insurers which account for 0.9% of the portfolio,
- Other corporates, which account for 4.2%,
- Treasury bill which accounts for 5.4% of the fund portfolio, and
- State Owned Enterprises, which account for 1.9% of the fund.
The fund invests hundreds of millions or billions of rands in a wide variety of money market securities. The fund is valued at R2.15 billion as of 2023, and each unit costs R11.09.
How the Coronation Jibar Plus Fund works
A vehicle for holding investments is needed to begin investing in the Coronation Jibar Plus Fund. Retirement investments are not permitted because the fund does not adhere to Regulation 28. You can use the fund to make regular investments like tax-free savings.
One can apply for the Coronation Jibar Plus Fund on the Coronation website. The minimum investment is necessary to participate in the fund. There are two options for funding the fund: one-time and recurring. The minimum investment for monthly contributions is R500, while the minimum investment for one-time contributions is R5,000.
A team of managers oversees the management of the fund and ensures that its goals are achieved. Fund managers consist of:
- Mauro Longano,
- Nishan Maharaj, and
- Sinovuyo Ndaleni
In order to support the mandate of the fund, these managers must be paid. A 0.45% annual management fee, exclusive of VAT, is charged for the fund. Fund expenses, which amount to 0.01 percent of other costs, are one such charge. The total investment fee, including VAT, is 0.52 %.
There are no transaction fees because the fund is for a brief period of time and withdrawals are permitted. You can withdraw money at any time. The investment must last for at least one year, according to the fund.
Advantages of the Coronation Jibar Plus Fund
- The fund’s capital exposure is very low.
- The fund is less volatile and can deliver higher returns than bank deposits.
- There are different ways to make contributions to the fund.
- The minimum contribution amounts are low.
- Income is distributed more than once a year.
- The fund has been consistently outperforming its set benchmark.
Disadvantages of the Coronation Jibar Plus Fund
- Retirement investments cannot be supported since the fund is not in compliance with Regulation 28.
- There is some exposure to capital.
Investments in the Coronation Jibar Plus Fund have the potential to generate substantial returns that are more than the rate of inflation in South Africa. The fund gives investors who prefer a less volatile fund the chance to put money aside while receiving income. Over the past 20 years, the fund has demonstrated its ability to provide growth while also restoring capital.