Preservation Fund

The Coronation Preservation Pension Fund and Coronation Preservation Provident Fund are suited for people changing employment and who have already built up retirement savings as a prior member of an occupational pension or provident fund.

The purpose of these funds is to preserve the tax deductions previously granted on retirement fund contributions and to continue to grow the value of your retirement assets until retirement. Preserving the tax status will maximise the tax-shield, thus maximising the tax-free retirement lump sum available. These funds are used when there is a change in employment (as a result of retrenchment, resignation or termination) or the closing of an occupational retirement fund.

The Coronation Preservation Funds are flexible, cost-effective and transparent. They are designed to allow you the flexibility to switch between investment options as your circumstances change, without incurring any penalties. We do not charge initial fees, we subsidise our annual administration fee of 0.2% (excluding VAT) and the fees of each of the underlying unit trust funds are fully disclosed

The underlying investment options are Coronation’s range of top-performing unit trusts which have consistently delivered strong investment returns since inception. This consistency of investment performance is reflected in Coronation being awarded numerous local and international investment performance accolades.

You can access the assets held in the Coronation Preservation Pension Fund and Coronation Preservation Provident Fund at each fund’s stipulated retirement date. One withdrawal, which will be taxed at your average rate, is allowed before retirement.

PRESERVATION FUND ADVANTAGESPRESERVATION FUND LIMITATIONS
  • Avoid paying tax upon receipt of a lump sum from a pension/provident fund
  • Grows your capital tax free
  • Unit trusts are the underlying investment structure
  • Allows one pre-retirement withdrawal
  • No initial fees, exit penalties or admin fees
  • Needs to comply with Regulation 28. Invest in Balanced Plus or Capital Plus, both of which offer a tailored solution for retirement savings

INVESTMENT OPTIONS

You may select from a wide range of Coronation unit trust funds. To simplify the investment decision, we highlight the flagship funds:

We believe these funds are best suited to growing and maintaining retirement benefits over the long term for the majority of investors.

When selecting the underlying unit trust funds please ensure that the combination complies with Regulation 28 of the Pension Funds Act.

Minimum Investment AmountLUMP SUMR50 000
RECURRINGNot applicable
ADDITIONALNot applicable

REGULATION 28 COMPLIANCE

The Coronation Preservation Funds are required to comply with Regulation 28 of the Pension Funds Act and Exchange Control legislation. Accordingly, the funds require that your investment complies with the following limits: a maximum exposure of 75% of the investment amount to equity investments; 25% to international investments; 25% to property.

Investing in the Balanced Plus Fund is the simplest way to achieve that using Coronation’s best investment views. Alternatively you may select from a wide range of Coronation unit trust funds and use our online calculator to ensure that you chose a combination of investment options that complies with these limits.

Coronation Client Services monitor compliance with these limits at the time of your initial investment and on each transaction thereafter.