The Coronation Global Managed ZAR feeder fund is designed for investors who desire a fund that makes global investments in a variety of assets. An investor must be seeking a fund with greater exposure to the global market since the fund does not invest in South Africa. However, a portion of the fund makes cash investments that can be retained in ZAR.
The fund’s mandate calls for it to invest primarily in developed economies, and the majority of its investments have been made in nations like the United States of America, Canada, and Japan. Additionally, the fund puts money into emerging markets.
The fund invests in a variety of assets, including commodities, stocks, cash, and real estate. As a result, the fund is more diverse and marginally more stable than a fund that invests entirely in stocks but less stable than a fund that invests only in bonds.
Since its inception, the Coronation Global Managed ZAR feeder fund has been able to expand significantly, despite occasional downturns. Since the fund’s establishment on October 29, 2009, it has been able to fulfil its objective.
The investment objective of the fund is medium-to-long term. The fund has a risk rating of 6 out of 10, which
Coronation considers to be moderate. To ensure that investors receive positive returns on their investments, an investment window of at least five years is encouraged.
Since it was established, the fund has endured some challenging periods. We examine the fund below with insights on how the fund has been performing compared to its benchmark and more. The fund is discussed in greater detail below.
Coronation Global Managed ZAR feeder fund summary
Besides South Africa, the Coronation Global Managed ZAR feeder fund invests in various assets all over the world. The benchmark for the fund is a composite consisting of 40% Barclays Global Bond Aggregate and 60% MSCI All Country World Index. A minimum initial investment into the fund of R5,000.00 or R500.00 per month is required.
Since it began, the fund has grown significantly. The fund has grown by 283% since its inception, which works out to an average annual growth rate of 11.3%. On the other hand, the fund’s performance has improved by 335.8% over time, which equates to a 12.4% annual growth. The benchmark outperformed the fund by an average of 1.1% every year, which is a significant amount for annual growth.
Despite being outperformed by its set benchmark, the fund has nonetheless provided investors with excellent returns. In fact, when measured against the inflation rate in South Africa, the fund has fared remarkably well. The annual average inflation rate was 4.6% higher than the 6.7% inflation rate in South Africa. This indicates that investments in the fund increased annually by an average of 4.6% while maintaining their true worth.
The fund’s managers are responsible for its growth. Coronation charges fees for administering and conducting business in the fund. The fund charges a 1.25% annual management fee in 2022. Transaction costs, which include fund expenses and the cost of doing transactions are also some of the expenses of transacting using the fund. These expenses are all billed yearly and are subject to change.
Given that the fund is managed to high standards, the costs associated with investing in it can be justified. The fund’s yearly all-time decline is quite low at just 7.7%. This demonstrates the fund’s capacity to reduce risk. Between January 2013 and December 2013, the fund reached an all-time high of 48.9%, proving its success.
To fulfil its objective, the fund makes investments in a variety of industries. The portfolio of the fund, broken down by sector exposure, is shown below.
Coronation Global Managed ZAR feeder fund asset allocation
| ASSET | PORTFOLIO PERCENTAGE |
| Equities | 69.4% |
| Infrastructure | 5% |
| Property | 2.6% |
| Convertible bonds | 1.6% |
| High Yield Bonds | 5.8% |
| Commodities | 4.7% |
| Merger Arbitrage | 2.6% |
| Fixed Income | 2.8% |
| T-Bills | 1.4% |
| Inflation break-evens | 0.3% |
| Investment Grade | 1.1% |
| Cash | 5.5% |
The majority of the fund’s holdings are stocks from developed markets. The majority of these equities are held in businesses in the US, Canada, and several regions of Europe. Since real estate is the firm’s second-highest holding by sector, the fund doesn’t hesitate to invest in it.
Following a summary of the fund’s top 10 holdings, we take a closer look at the businesses the fund invests in.
Top 10 holdings by the Coronation Global Managed ZAR feeder fund
| # | Company Name | Fund Percentage |
| 1 | Canadian Pacific Railway Ltd | 3.4% |
| 2 | Alphabet Inc | 3.3% |
| 3 | Charter Communication A | 3.2% |
| 4 | British American Tobacco | 2.8% |
| 5 | Visa Inc | 2.8% |
| 6 | JD. Come Inc Adr | 2.6% |
| 7 | Amazon. Com Inc | 2.6% |
| 8 | Vinci SA | 2.2% |
| 9 | Prosus SA | 2.2% |
| 10 | Canadian National Railway Co | 1.9% |
Advantages of the Coronation Global Managed [ZAR] feeder fund
- There are two ways to make contributions to the fund.
- The fund offers moderate returns on investment and doesn’t risk as much as a fund that only invests in equities.
- The fund provides reasonable returns that are above the South African average inflation rate.
- Long-term investments have a chance to earn maximum interest.
Disadvantages of the Coronation Global Managed [ZAR] Feeder fund
- The fund isn’t Regulation 28 compliant.
- Fees associated with the fund are high.
Conclusion
The Coronation Global Managed ZAR feeder fund is primarily for those who want to invest for the long term and don’t need income from their investments immediately. Long-term investments in the fund often yield good returns since the fund can compensate for market losses over time. Additionally, one must be willing to make investments outside of South Africa. For short-term investments, one can invest in the Coronation Jibar Plus Fund.
