South Africa - Institutional
Domestic Inflation Plus
INSTITUTIONAL
INVESTMENT OBJECTIVE:
The Coronation Domestic Inflation Plus Strategy targets positive real returns with an overriding focus on limiting downside returns or portfolio losses. Therefore, capital preservation in real terms is equally important to return optimisation. The Strategy is managed in accordance with the limits of Regulation 28 of the Pension Funds Act. The Strategy can invest up to 40% in Domestic Equities.
Coronation is a long-term, valuation-driven investment house. Our aim is to identify mispriced assets trading at discounts to their long-term underlying value (fair value) through extensive proprietary research. In calculating fair values, through our fundamental research, we focus on through-the-cycle normalised earnings and/or free cash flows using a long-term time horizon. The Portfolio is constructed on a clean-slate basis based on the relative risk-adjusted upside to fair value of each underlying security. The Portfolio is constructed with no reference to a benchmark. We do not equate risk with tracking error, or divergence from a benchmark, but rather with the probability of a permanent loss of capital.
The value of investments may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance.
| STRATEGY RETURNS GROSS OF FEES | |||
|---|---|---|---|
| STRATEGY | BENCHMARK* | OUTPERFORMANCE | |
| Since Launch (unannualised) | 104.7% | 35.7% | 69.0% |
| Since Launch (annualised) | 11.1% | 4.6% | 6.5% |
| Latest 3 years (annualised) | 15.4% | 4.1% | 11.3% |
| Latest 1 year | 16.5% | 3.1% | 13.4% |
| Year to date | 16.0% | 3.1% | 12.9% |
| Latest 3 months | 5.0% | 0.7% | 4.3% |
| Month | 2.6% | (0.1)% | 2.7% |
* Consumer Price Index (CPI)
The value of investments may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance.