The Coronation Global Capital Plus Fund (house view currency) is a unit trust that invests in multi assets worldwide. The fund was launched on the 1st of September 2009 and has been able to grow since its inception. Growth by the fund is much slower than a fund that is concentrated in equities or bonds.
The Coronation Global Capital Plus Fund offers a diverse portfolio that invests in many countries. The fund has most of its portfolio invested in developed economies, with equities making up the majority of the fund. Other assets, such as real estate bonds and more, also make up part of the fund.
The fund also invests in emerging markets and it is well invested in China and other emerging markets. However, the fund is biased towards investments in developed economies. Most of the fund is invested in the USA, some parts of Europe and Japan.
The fund is suitable for anyone that wants to invest in a single international investment offering exposure to different assets. The fund offers moderate risk and isn’t as volatile as funds that are concentrated. Furthermore, the fund aims to curb its investments in growth assets to 50%.
By doing this, the fund will only change or grow in easy-to-manage percentages. For instance, the investments only achieved a record low of 7.4% between September 2014 and August 2015. A record high of 17.1 % was also achieved by the fund between July 2010 and June 2011.
The fund’s lows and highs demonstrate how it is less risky than other investments because it doesn’t experience lows or highs of 50% or more. The fund doesn’t offer high returns but offers stability Due to the fund’s low level of risk, returns on investment are low.
We go further with the fund’s statistics below to show how the fund performs from time to time and the costs that come with it. The fund is discussed in greater detail below.
Table of Contents
The Coronation Global Capital Plus Fund (house view currency) is a unit trust that invests in multiple assets in developed and emerging markets. The fund was first launched on the 1st of September 2009 and follows the Secure Overnight Financing Rate (SOFR) + 1.5%. To get started with the fund, a minimum lump-sum investment of $15,000.00 is required.
Since its launch, the fund has recorded 59.1% growth and an average annual increase of 3.7%. The benchmark recorded 19.6% during the same period and annual average growth of 1.4%. As a result, the fund outperformed the benchmark by a 2.3% annual average. The annual average performance of the fund is high since it is 164% higher on average.
Noting that the returns from the fund are low since they are below the average inflation rate of South Africa but they are on par with the US inflation rate. The fund is quoted in USD, so the fund uses the US inflation rate to rate an increase or decrease in the real value of the fund.
The fund is meant to preserve the capital invested and protect it from market inefficiencies. Those that want to invest for the short term can invest in the fund since it doesn’t come with too much risk on the capital investment for a short-term investor.
However, the fund still encourages investors to invest for at least 3 years. Looking at the latest 3 years of statistics, the fund has managed to provide an average annual return of 3.6%, which is somewhat close to the percentage of growth per year by the fund since its launch.
To achieve such great results with a fund that is conservative, the fund has an interesting portfolio. Below, we look at the assets that the fund invests in.
|High Yield Bonds||8.4%|
As of 2022, the fund is valued at $710.41 million and most of this money has been invested in equities in different countries. The fund further invests in a number of assets and has most of the fund invested in fixed income. Fixed income investments come with a high level of security and balance the fund so well that it can retain the capital that is invested.
As the fund is mostly invested in equities, we have compiled some of the companies that the fund invests in. We have limited our list to the top 10 companies that the fund invests in. The companies are listed below.
|#||Company Name||Fund percentage|
|2||National Grid Plc||1.4%|
|3||51 Job Inc Adr||1.3%|
|5||British American Tobacco||1.2%|
|7||World Quantum Growth Acquisi||1.1%|
|8||Charter Communication A||1%|
|10||Canadian Pacific Railway Ltd||1%|
The Coronation Global Capital Plus Fund is mainly for those that want to preserve their capital while gaining some interest in the investment. The fund is able to grow at a high rate when compared to similar funds and creates more value for investors over a longer investment window.