Coronation Global Equity Select Fund invests in international equities. However, the fund is more biased toward stocks from developed countries.
The fund invests up to 70% of its assets in shares of companies based in the developed world. The fund may also invest in stocks from emerging market countries.
Equities that can be held in accordance with the fund’s mandate account for 30% of the total portfolio. Investments in emerging markets and developed countries may occasionally exceed the recommended thresholds in order for the fund to meet its objectives.
The fund intends for the portfolio to be made up entirely of shares. This, however, is not always the case.
The fund is permitted to allocate a portion of its portfolio to bonds and cash. Coronation Global Equity Select may keep up to 20% of its assets in cash and bonds.
The information aforementioned clearly shows that the fund focuses the majority of its financial resources on investing in companies in developed countries.
As a result, the fund is subject to fluctuations that are likely to affect short-term investors. The fund recommends investing in it for a period of at least 10 years.
The speculative investor is likely to put his or her capital at risk. As such, the fund recommends those who want to invest for 3 years or less should look for other funds such as the Coronation Strategic Income Fund.
The fund aims to provide long-term capital growth, as achieving those results may decrease the value of the investment over the short term. Therefore, one must truly understand the fund before investing in it as it is not suitable for any investor.
We provide a detailed analysis of the fund below to aid you in understanding the fund.
Coronation Global Equity Select Fund summary
The Coronation Global Equity Select Fund is a unit trust that invests in equities in the developing and developed world. The fund doesn’t invest in South African equities. To get started with the Coronation Global Equity Select Fund, an investment of $15,000.00 or more is required.
The money invested in the fund will be used to buy units in the fund. As of 2023, the Coronation Global Equity Select Fund is valued at $288.49 million. The fund has the MSCI All Country World Index as its benchmark and tries to outperform or at least match it.
An investment in the fund will be determined by the earnings from the investments made through the fund. The fund has managed to grow slowly but surely since its inception. The fund was launched on January 30, 2015, and since its launch, the fund has managed to grow by 37.1%.
On average, the fund grew by 6.5% annually as compared to the benchmark’s annual growth of 8.5%. Since the fund’s inception, the benchmark has managed to grow by 50.4%. It is clear that the fund hasn’t managed to outperform the benchmark since it was first launched.
The biggest drawback of the fund is the highest annual decrease that it has ever recorded, which took place between May 2021 and April 2022, a 26.4% decline. Since the fund recommends that investors have a long-term investment in mind, the fund is only just having its downs, which it will recover from.
The fund’s assets are allocated to various companies across the world. Below, we showcase the fund’s asset exposure per continent.
Coronation Global Equity Select Fund asset exposure by location
| Geographic location | Fund exposure in percentage |
| North America | 54.8% |
| Asia | 8.1% |
| Europe | 31.9% |
| South Africa | 3.2% |
| Japan | 1.5% |
| Latin America | 0.6% |
| Cash | 0.1% |
The fund has most of its investments in North America and has a vast holding in technology companies. The fund, as of 2023, has invested 99% of its portfolio investment in equities.
To better understand the fund’s composition, we list the top 10 holdings that it has. The list is as follows.
Top 10 holdings of the Coronation Global Equity Select Fund
| # | Company Name | Fund percentage |
| 1 | British American Tobacco | 5.2% |
| 2 | Charter Communication A | 4.6% |
| 3 | Alphabet Inc | 4.9% |
| 4 | Airbus Group Se | 3.2% |
| 5 | Philip Morris Int Inc | 3.2% |
| 6 | Anthem Inc | 3% |
| 7 | Heineken NV | 2.9% |
| 8 | Unitedhealth Group Inc | 2.9% |
| 9 | Naspers Ltd | 2.8% |
| 10 | Alibaba Group Holding | 2.6% |
The fund has seen a very high level of success since it was launched in late 2021. This is mainly attributed to the fall of tech stocks such as Meta, Netflix, and more. This has created a huge loss to the value of the fund.
However, the fund is intended to attract investors who want to invest over a longer period of time, preferably 10 or more years. Such long-term investments are likely to gain more value since the fund is able to absorb market losses that are created over the short run.
Advantages of the Coronation Global Equity Select Fund
- The fund has a high reward potential for those that want to invest for the long term.
- Those that want to invest in a fund that invests more in developed countries can benefit from investing in the product.
- The fund is a good way of making a diversified investment for those that hold investments in unit trusts that invest locally or in other instruments other than equities.
- Anyone can invest in the fund, provided the person has a minimum required contribution.
Disadvantages of the Coronation Global Equity Select Fund
- The fund has a minimum contribution that is too high for an ordinary investor.
- The fund hasn’t been able to match or outperform its set benchmark since fund inception.
Conclusion
The Coronation Global Equity Select Fund has high potential and is still new. An investment in the fund has high hopes of earning high interest as per historic data. And since the benchmark has managed to perform exceptionally well, the fund will follow suit.
