Coronation Global Capital Plus is a unit trust that invests in developed markets. The fund is most appropriate for people who want to protect their capital while also growing it. This ensures that the investment will increase sustainably over time.
The fund makes investments in a variety of assets in order to fulfill its objective. The fund invests in the following assets:
- Equities,
- Infrastructure,
- Property,
- Convertible Bonds,
- Commodities,
- Merger Arbitrage,
- Fixed income investments (T-Bills, inflation break-evens, and investment grade) and
- Cash.
It is evident from the assets the fund invests in that the fund is composed of assets with both income and growth potential. However, the fund only invests 50% of its portfolio in growth assets as per mandate. To guarantee the fund’s ongoing earnings, the remainder of the portfolio is kept invested in income-producing securities.
In addition to trying to protect capital by putting more money into income-producing assets, the fund also puts money into growth assets in an effort to increase capital. Growth asset investments made by the fund are regarded as investments with a moderate level of risk. This is primarily a result of the fund’s swings.
The fund’s goal is to safeguard invested money over a 12-month period under all market circumstances. Despite the fact that the fund doesn’t fluctuate as much as a fund that is specialized in growth assets, it still needs at least a medium investment window of three years or longer to generate high earnings per unit.
Since its inception, the fund has been able to produce favorable returns. We examine and describe the fund’s results in order to better understand (statistically) how it is run and managed. More information on the fund is provided below.
Coronation Global Capital Plus Fund [USD Hedged Class] summary
The Coronation Global Capital Plus Fund [USD Hedged Class] summary indicates it’s a unit trust worth $631.20 million with a benchmark set at SOFR +1.5%. About 31.2% of its assets are invested in foreign equities. To invest, a minimum of $15,000.00 is required, and the fund has been operational since September 1, 2009, with a growth rate of 57.9% or 4.2% annually. Compared to its benchmark, the fund has outperformed by 1.7%.
As of January 31, 2024, the fund, managed by Neil Padoa, has grown to $643.91 million with a NAV of 16.65. Its benchmark is SOFR + 1.5%, and the total expense ratio is 1.34%, with an annual fee of 1.25%. The fund invests in various asset classes like equities, infrastructure, property, bonds, and cash, primarily in developed economies but with potential exposure to emerging markets. It’s tailored for conservative investors seeking long-term growth and capital preservation over a 12-month period.
The fund’s performance has seen ups and downs, with its best return of 15.9% from April 2020 to March 2021. Over the latest periods, it has shown annualized returns of 6.8% for the past 3 years and 0.6% for the latest year. Despite market fluctuations, the fund aims to provide meaningful growth and protect capital over time, catering to investors looking for international opportunities while maintaining a conservative approach.
This demonstrates how the fund can generate strong growth while incurring minimal losses, allowing capital to appreciate over time.
To see how the fund achieves such financial success, we look at how the fund is invested. We list the assets that the fund invests in below.
Coronation Global Capital Plus Fund [USD Hedged Class] asset allocation
| Asset | Portfolio % |
|---|---|
| Equities | 21.4% |
| Infrastructure | 3.7% |
| Property | 2.0% |
| Convertible Bonds | 2.4% |
| High Yield Bonds | 6.5% |
| Gold | 0.0% |
| Merger Arbitrage | 63.2% |
| Fixed Income | 18.8% |
| T-Bills | 9.8% |
| Inflation-linked bonds | 34.6% |
| Investment Grade | 0.8% |
| Cash | 0.8% |
To achieve its goals, the fund makes a variety of investments, but it focuses primarily on fixed income and equities. Growth and income assets are included in the fund, however, income assets make up the majority of the fund. In this manner, the fund is able to expand significantly while offering good returns over any 12-month period. 100% of the fund is stored in USD.
We provide the top 10 holdings of the fund to help you better understand the assets it invests in. Below are only equity interests.
Top 10 holdings of the Coronation Global Capital Plus Fund [USD Hedged Class]
Here are the top 10 equity holdings of the fund:
- Canadian Pacific Railway Ltd – 1.0%
- Heineken Holdings Nv – 1.0%
- Canadian National Railway Co – 0.8%
- Airbus Group Se – 0.8%
- Cellnex Telecom Sa – 0.8%
- Amazon Com Inc – 0.8%
- National Grid Plc Common Stock Gbp – 0.8%
- Eiffage – 0.8%
- Interactive Brokers Group – 0.8%
- Vinci Sa – 0.7%
Advantages of the Coronation Global Capital Plus Fund [USD Hedged Class]
- The fund consistently outperforms its set benchmark.
- The fund is held in USD which is one of the most stable currencies in the world.
- Capital invested has the ability to grow and be protected to a certain degree.
- The fund outperforms the average US inflation rate.
- The fund is well diversified and limits risks on any asset the fund invests in.
Disadvantages of the Coronation Global Capital Plus Fund [USD Hedged Class]
- The fund requires a high amount of money to be invested at once.
- Short-term investments may not yield positive results.
Conclusion
A wonderful strategy to protect and increase USD assets is through the Coronation Global Capital Plus Fund. The fund can increase over time and outperform the average inflation rate in the US. One can also invest in the Coronation Global Capital Plus Fund [GBP Hedged Class], which is held in GBP.
