Multi-Asset Funds

Simplify the decision-making process

Multi-asset funds reduce the complexity of decisions you need to make and diversify risk across asset classes. A good multi-asset fund delivers returns that are better than that of the equity market in the really tough times; providing the possibility of compounding returns above the market when risk assets (e.g. equity and property) are under pressure – this smoothing effect is the greatest benefit of diversification.

Asset allocation

Asset allocation is the most important decision in investments – and a skill that few investment managers possess. Coronation has one of the largest and most experienced investment teams in South Africa, including 3 former chief investment officers, and a 16-year track record of adding value through asset allocation. Our team is fully integrated, which means that research meetings and debates are conducted across asset classes, markets and geographies. We do not operate in silos. When you invest in a multi-asset fund you give Coronation the responsibility and accountability for all investment decisions.

More than just equities, bonds and cash

Asset allocation involves weighing up the merits of different asset classes in a combined portfolio. We have the skill and experience to invest beyond equities, bonds and cash, into niched asset classes, such as listed property, ETFs, preference shares, inflation-linked bonds, corporate credit spreads, emerging markets and direct commodities. Our aim is to enhance the risk-adjusted return profile of each of our risk-profiled multi-asset funds.

Manage the risk

All investment decisions are trade-offs. While equity is the asset class that most often produces the best returns over the longer term, it is also the one with the most variability in returns from year to year. Take a look at history: between 1960 and 2009, the local equity market produced an average return of 20% p.a. The best calendar year return in this period was more than 90%, while the worst recorded a loss of more than 25% of capital. If short-term losses worry you, you can only afford to have moderate exposure to equities. Investing in a multi-asset fund with clearly defined objectives can do this for you. It allows Coronation to use the return generation power of the market but within limits that you are comfortable with.

Avoid errors of emotion

History shows that an investors' desire to buy is highest after a period of rising prices, and likewise the desire to sell is greatest when prices have already fallen. Buying high and selling low is the cardinal investment sin, often resulting in permanent capital loss. Multi-asset funds reduce the risk of poorly timed asset allocation decisions.

Ignore the noise

We take high-conviction views that result in consistent superior long-term performance. All our funds are managed with a common commitment to a disciplined investment philosophy, characterised by proprietary research and a commitment to the long term - this is what we call the Coronation DNA. Our multi-asset funds are a combination of Coronation's best investment views across the asset classes.

Choose the fund that's right for you

Not all multi-asset funds are the same - different funds meet the needs of different investors. The level of risk that you are willing and able to take will determine which fund is right for you. So before you invest, decide what it is you want to achieve. By investing in a multi-asset fund your outcomes are more closely aligned with your lifestyle objectives. So if you're saving for retirement the Coronation Balanced Plus is the perfect vehicle, giving you Coronation's best investment views across the various asset classes. Or Capital Plus, which aims to achieve the right balance between current income and growing capital when you've just retired. It's all about delivering performance that meets your investment needs. There are no short cuts to wealth creation.