Coronation Global Capital Plus [ZAR] feeder fund review 2024

Investing wisely requires a deep understanding of available opportunities, and the Coronation Global Capital Plus [ZAR] Feeder Fund stands out as an enticing option for those seeking global exposure with a focus on capital preservation. Launched in November 2008, this fund is meticulously managed to offer reasonable growth over time, catering specifically to conservative investors with a long-term perspective.

Coronation Global Capital Plus [ZAR] Feeder Fund Fees

Investors in the Coronation Global Capital Plus [ZAR] Feeder Fund are subject to an annual fee of 1.25%. This fee structure includes a 0.40% charge at the feeder fund level, with the remainder collected within the master fund. Notably, all fees mentioned are exclusive of VAT and cover various expenses such as fund management, trading, custody, and audit charges.

Coronation Global Capital Plus [ZAR] Feeder Fund Summary

The Coronation Global Capital Plus [ZAR] Feeder Fund, established in November 2008, is strategically managed to achieve substantial investment growth while prioritizing capital preservation. It is designed for investors with a conservative risk appetite who seek long-term wealth accumulation rather than immediate income generation. This fund falls under the low-equity, multi-asset category and is classified with a conservative to moderate risk profile.

Coronation Global Capital Plus [ZAR] Feeder Fund Asset Allocation

The asset allocation strategy of the Coronation Global Capital Plus [ZAR] Feeder Fund is meticulously crafted to maintain a balanced portfolio. The fund primarily invests in growth assets such as equities and listed property, with a limit of around 50% exposure to these riskier assets. Additionally, the fund holds investments in bonds, including inflation-linked bonds and investment-grade bonds, contributing to a well-diversified investment approach. This strategic allocation aims to mitigate risk while seeking opportunities for long-term growth across various sectors and markets globally.

Top 10 Holdings of the Coronation Global Capital Plus [ZAR] Feeder Fund

The fund’s top holdings include Canadian Pacific Railway, Heineken Holdings, Canadian National Railway, Airbus Group, and others, providing diversified exposure across industries.

Advantages and Disadvantages

Advantages:

• Diversified Global Exposure: Access to various asset classes and regions reduces portfolio risk.
• Focus on Capital Preservation: Designed to protect investors’ capital over 12-month periods, ideal for risk-averse individuals.
• Access to Top-Performing Companies: Investments in reputable global companies offer potential for strong returns.

Disadvantages:

• Moderate to High Risk for Rand Investors: Significant foreign asset exposure can lead to moderate to high risk, especially for rand-denominated investors.
• Vulnerability to Currency Fluctuations: Exposure to multiple currencies, especially those in developed markets, exposes the fund to currency volatility.
• Limited Income Distribution: Semi-annual income distributions may not suit investors seeking consistent income streams.

Conclusion

The Coronation Global Capital Plus [ZAR] Feeder Fund presents a compelling opportunity for investors seeking a balanced approach to wealth accumulation and preservation. With its diversified global exposure, focus on capital preservation, and access to top-performing companies, the fund offers potential for long-term growth. However, investors should be mindful of the moderate to high risk, especially for rand-denominated investors, and the impact of currency fluctuations. Overall, for investors with a conservative to moderate risk tolerance and a long-term investment horizon, this fund can be a valuable addition to a well-rounded investment portfolio.