The Coronation Balanced Plus fund seeks to increase investments by making balanced investments. Investors have the option to invest in a fund that complies with Regulation 28 owing to the fund’s asset composition. This indicates that the fund may be used to make investments for retirement plans.
As a result, retirement annuities, living annuities, endowments, and other retirement products can all be accommodated by the fund. The fund has successfully maintained its equity investments (including domestic and foreign equities) at less than 75% in order to remain in compliance with Regulation 28. Additionally, the fund was able to keep its percentage of real estate investments to under 25%, making it a Regulation 28 compliant investment vehicle.
The fund is renowned for the variety of assets it manages. With the exception of 1997–1999 and 2003, the fund has consistently outperformed CPI + 5% during the course of its history. Since then, the fund has experienced unheard-of growth. Its managers and the investments they make are responsible for the growth.
The fund is made up of stock investments, which make up 74.90% of the total investment. These include a mix of investments in domestic and international equity. Over the course of its existence, the fund has managed to post growth of 2768.90% from 1996 to 2023. Since its establishment, the fund has grown by an average of 13.7 % annually.
Anyone looking to invest for the long term would find the fund appealing with such performance over a short period of time. The plan may work effectively for pension investments if they get locked over decades, depending on the investor’s age, as the fund also accepts pension investments.
The Coronation Balanced Plus fund is a fantastic investment. However, for a better understanding of the fund, read the discussion that follows before making a purchase. More information on the fund is provided below.
Coronation Balanced Plus Fund summary
The Coronation Balanced Plus fund is a unit trust that is managed by Karl Leinberger and Sarah Jane Alexander. The minimum monthly debit order contribution to the fund is R500.00. Alternatively, a lump sum commitment of at least R5,000.00 can be made to the fund.
The fund has investments in a variety of domestic and international assets. The fund’s current domestic asset holdings include cash, bonds, cash equivalents, and real estate. The following is how the fund’s investments were distributed:
- Local equities investments 48.90%,
- Foreign equities investments 26.00%,
- Local bonds investments 20%,
- Local real estate investments 3.1%,
- Foreign real estate investments 0.20%,
- Local cash 1.80%, and
- Foreign bonds investments 0.10%.
The majority of the fund’s investments are in equity-related ventures. The fund has been successful in making sizable investments in stocks. The following investments are held by the fund, according to its most recent investment data.
Top 10 Holdings for the Coronation Balanced plus fund
| # | Company | Fund percentage |
| 1 | Prosus NV | 4.6% |
| 2 | Anglo American Plc | 4.1% |
| 3 | FirstRand limited | 3.1% |
| 4 | Anglo Gold Ashanti limited | 2.8% |
| 5 | Glencore Xstrata Plc | 2.2% |
| 6 | Standard Bank of South Africa Ltd | 2% |
| 7 | MTN group Ltd | 1.7% |
| 8 | British American Tobacco Plc | 1.6% |
| 9 | Compagnie Financiere Richemont SA | 1.6% |
| 10 | Rand Merchant Investments Holdings | 1.5% |
How the Coronation Balanced Plus Fund works
Regulation 28 is adhered to by the Coronation Balanced Plus Fund. As a result, the fund accepts investments for retirement. Endowments, preservation funds, retirement annuities, and other assets fall under this category. The fund is intended for medium-to-long-term investments, so investments made for retirement can provide high returns over time.
A contribution must first be made to the fund in order to begin investing in it. For individuals who desire to invest through debit orders, the contribution can be R500 or more every month. Alternately, payment in one lump sum of at least R5,000.00 may be made. Contributions to the fund may be made using either one or both of these methods.
The funds invested will be utilized to purchase Coronation Balanced Plus fund units after a successful application. The number of units an investor owns will depend on the amount invested. The investment manager will then direct the fund so that it can achieve its goals.
An annual management fee is payable for the fund manager’s efforts to steer the fund. As of 2023, the fund charges an annual management fee of 1.25% excluding VAT. Other charges are also levied with regard to the fund. These include transaction costs, fund expenses, and management fees.Â
The fund insists that investors invest for a period of 5 or more years to achieve favourable returns. The units bought will grow according to the performance of the fund. At the date of sale, an investor will either make a profit, break even, or make a loss.
Advantages of the Coronation Balanced Plus Fund
- The fund provides returns that are above average for a long-term investor.
- Fees levied for the fund are reasonable considering the performance of the fund.
- An investor can switch funds from one fund to another fund.
- The fund is Regulation 28 compliant.
- Those that use the fund to invest for retirement get tax benefits.
- There are two methods of making contributions to the fund.
- The fund regularly outperforms its set benchmark.
Disadvantages of the Coronation Balanced Plus Fund
- The fund fluctuates more in the short run and may lead to capital losses for a short-term investor.
- Capital may decrease from time to time, especially in the early days of placing the investment.
Conclusion
For those looking to invest in a fund that allows for retirement savings, the Coronation Balanced Plus fund has excellent growth potential. According to historical data, an investment made for 10 years or more in the fund has the potential to increase several times. However, short-term investors may not benefit from the fund as it fluctuates more.
