Coronation Global Capital Plus Fund [GBP Hedged Class]

Coronation Global Capital Plus Fund

All returns from the Coronation Global Capital Plus Fund [GBP Hedged Class], a fund managed by Coronation, are completely hedged back into British pounds sterling. The fund was launched on September 1, 2009, and it makes investments in a variety of assets. The following investments were made by the fund as of 2022:

  • Equities, 
  • Infrastructure, 
  • Property, 
  • Convertible Bonds
  • High Yield Bonds, 
  • Commodities, 
  • Merger Arbitrage, 
  • Fixed Income investments (T – Bills, inflation break-evens, and investment grade) and
  • Cash

The fund invests in all of these assets both domestically and abroad. The fund favours investments in developed markets and has significant holdings in nations including Canada, the United States of America, and the United Kingdom. The fund includes investments in emerging markets as well.

The fund favours investing in income-producing assets over growth assets. Growth asset investments are restricted to a maximum of 50% of the portfolio at any given time, with the remaining funds being invested in income assets. 

The fund can provide sustainable growth while protecting capital with this limit on growth assets. Growth assets pose short-term risks, while income assets may have a guaranteed income that helps offset those risks. As a result, the fund will be less erratic than the one that invests only in stocks.

The fund is regarded as conservative because it exposes investors to moderate risk. Additionally, investment capital is shielded up to a certain amount. However, investors could lose money, and the fund doesn’t guarantee any profit.

We examine the fund and its activities to better understand how it invests the contributions. The fund is covered in more detail below.

Coronation Global Capital Plus Fund [GBP Hedged Class] summary

The Coronation Global Capital Plus Fund [GBP Hedged Class] is a unit trust that invests in a diverse range of assets globally. The British pound sterling serves as the fund’s base currency. Investors must make a minimum commitment of £15,000.00 to begin utilizing the fund.

The Coronation Global Capital Plus Fund [GBP Hedged Class] is worth £710.41 million as of 2022. The goal of the fund is to perform better than SONIA (Sterling Overnight Index Average) + 1.5%. The fund uses a mandate that can outperform the benchmark, SONIA + 1.5 %.

While a portion of the fund is invested in emerging markets, the majority of the fund’s portfolio is invested in established economies. The fund’s strategy has been able to work in the fund’s favour since it has outperformed the set benchmark. 

The fund has grown by 43.8% since its inception and has seen an average yearly growth of 3.5%. The fund was able to surpass the UK’s 2.15% annual average inflation rate from 2009 to 2022. Thus, between 2009 and 2022, the fund beat the UK’s average inflation rate by 1.35%.

The SONIA + 1.5%, on the other hand, has increased in value by 23.6% from the fund’s inception. The benchmark experienced a 2% average yearly growth within the same time period. The fund has been able to outperform SONIA + 1.5% by an average of 1.5% annually. 

This exemplifies how the portfolio can outperform inflation while beating it. As a result, an investment in the fund has the potential to increase in value as well as surpass the rate of inflation.

 Due to investments made, the fund is able to produce these results. The fund makes investments in a wide variety of assets. We examine each asset that the fund invests in individually as well as the distribution of the portfolio overall.

Coronation Global Capital Plus Fund [GBP Hedged Class] 

ASSETPORTFOLIO PERCENTAGE
Equities32.6%
Infrastructure 4.1%
Property 2.4%
Convertible Bonds1.9%
High Yield Bonds8.4%
Commodities5.3%
Merger Arbitrage1.9%
Fixed Income37.3%
  T – Bills18.6%
  Inflation break-evens0%
  Investment Grade18.7%
Cash6.1%

The majority of the fund’s holdings are in fixed income and equities. However, because the fund invests mainly in bonds and other fixed income instruments, it is significantly engaged in income-producing assets. According to its asset allocation, the fund is able to weather volatile stock market conditions since it has a substantial number of investments in income assets with constrained growth guarantees.

Here is a list of the fund’s top 10 holdings to help you better understand it. Below is a list of items.

Top 10 holdings of the Coronation Global Capital Plus Fund [GBP Hedged Class] 

#Company NameFund percentage
1Vinci SA1.5%
2National Grid Plc1.4%
351JOB Inc Adr1.3%
4Getlink SE1.3%
5British American Tobacco 1.2%
6Visa Inc 1.1%
7World Quantum Growth Acquisi 1.1%
8Charter Communication A 1%
9Alphabet Inc 1%
10Canadian Pacific Railway Ltd 1%

The fund has made significant stock investments in businesses from developed nations. The United States and Canada are the most prominently displayed, demonstrating how the fund prioritizes stocks from businesses in developed regions. The earnings from these assets are immediately transferred to GBP, whether they are paid in USD, CAD, or Yen. As a result, the fund’s currency allocation is 100% GBP. 

Advantages of the Coronation Global Capital Plus Fund [GBP Hedged Class] 

  • The fund provides capital stability while growing the capital invested. 
  • The fund is well balanced in the investments that it makes, which makes the fund a moderate-risk investment. 
  • The fund holds the money invested and proceeds from an investment in GBP, so the fund is able to keep up with the UK inflation rate and it outperforms it on average. 
  • The fund is able to outperform its set benchmark. 

Disadvantages of the Coronation Global Capital Plus Fund [GBP Hedged Class] 

  • The money invested can decrease from time to time. 
  • There are no capital guarantees when investing in the fund, unlike fixed deposit accounts, which offer capital security. 

Conclusion 

With its significant capital growth, the Coronation Global Capital Plus Fund offers a fantastic method to store assets in GBP. The fund is a wonderful investment for people looking to invest in a fund with worldwide exposure because it can outperform inflation while investing in western companies.

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