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ACCOUNTS
Preservation Fund
A preservation fund is a special type of investment account that helps you keep and grow your retirement savings, tax-efficiently, until you actually retire.
You might need one if you change jobs or if your workplace pension or provident fund closes.
How it works
You can make a once-off investment (minimum R50,000) into a Coronation Preservation Pension or Coronation Provident Fund. To complete your application form, simply follow these steps:
Transfer your savings from a workplace fund or another preservation fund.
Choose your investments – see below for more detail.
Enjoy the benefits – no tax on transfer, and your money grows tax-free until retirement.
Note that once you are invested, you cannot add more money later, the account is meant to “preserve” what you already have. But if you want to continue saving towards your retirement, you can consider opening a Retirement Annuity investment account.
Why it’s tax-efficient
When you transfer your retirement savings into a preservation fund, you keep the same tax benefits you had before.
This means:
- No tax when you transfer.
- Your investment grows tax-free inside the fund.
Choosing your investments
Your investment must follow Regulation 28 rules, which limit how much can go into shares, offshore investments, and property.
- The simplest way to stay within these limits is to invest in Coronation Balanced Plus, or
- You can choose from our wide range of unit trusts and use our online calculator to check your mix meets the rules.
Understanding your components
Your savings may have different components (Vested, Retirement Lump Sum, Retirement Income).
Your chosen investments will apply to all of them, but the rules for when and how you can access them may differ.
Why a Coronation Preservation Fund makes sense for you
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. We do not charge initial fees, account fees, or annual administration fees. The only fees payable are the annual management fees applicable to the underlying unit trust funds which are fully disclosed on each fund's fact sheet and on our website.
What are the benefits and limitations?
Here’s a summary of the key benefits and limitations of a Coronation Preservation Fund.
Benefits
- No tax due upon transferring into or between preservation funds
- Your investment returns grow tax-free until retirement
- Choose from our range of unit trust funds (but subject to Regulation 28 compliance) and switch between funds
- One withdrawal per tax year from your Retirement Lump Sum Component* (min R2,000)
- One withdrawal of up to 100% of your Vested Retirement Savings** pre-retirement
- No initial fees, account fees or administration fees
- Transfer to another preservation fund provider
*Subject to the availability of funds in such component.
**Subject to when you started to invest in a preservation fund. See our FAQs for more.
Limitations
- Your underlying investments need to comply with Regulation 28, currently limiting equity exposure to 75%, international exposure to 45%, and property exposure to 25%
- You can only invest in rand-denominated unit trusts
- An investment minimum of R50,000 applies
FUNDS
What are my investment options?
You can choose to invest in any of our rand-denominated funds.
Popular choice
Balanced Plus
This fund is our flagship fund for retirement savers. It reflects our core house investment view within the constraints that govern retirement savings. It invests in a combination of shares, bonds, property, and cash - locally and globally - with a strong focus on growth assets to maximise long-term returns.
- Invests across shares, bonds, property, and cash, locally and globally
- Foreign exposure limited to 45%
- Regulation 28 compliant
Risk rating
Minimum investment term
5 years +
Try our investment calculator
Click here to see the returns of this fund if you had invested sooner
View fund performance
Invest in this fund
Balanced Plus
The fund aims to achieve the best possible investment growth for retirement savers (within the constraints of Regulation 28 of the Pension Funds Act) over the long term.
Investor profile
The fund is suitable for investors: Building up long-term retirement capital. Requiring a moderate capital growth portfolio. Looking to preserve the purchasing power of their capital over the long-term, but not prepared to accept the short-term turbulence of the equity market. With a time horizon of five years or longer.
Benchmark
South African – Multi-asset - High Equity ASISA fund category average (excluding Coronation funds)
Risk rating
Minimum investment term
5 years +
Exposure to growth assets
Maximum: 85%
Annualised past performance (after fees)
| Returns | Fund | CPI + 5% | PEER GROUP AVERAGE |
|---|---|---|---|
| Since Launch (unannualised) | 4,440.2% | 2,015.9% | 2,891.2% |
| Since Launch (annualised) | 13.8% | 10.9% | 12.2% |
| Latest 20 years (annualised) | 12.0% | 10.4% | 9.9% |
| Latest 15 years (annualised) | 11.1% | 10.0% | 9.6% |
| Latest 10 years (annualised) | 9.7% | 9.8% | 8.4% |
| Latest 5 years (annualised) | 15.0% | 9.9% | 12.8% |
| Latest 3 years (annualised) | 18.5% | 9.1% | 15.5% |
| Latest 1 year | 21.5% | 8.1% | 15.1% |
| Year to date | 17.3% | 6.9% | 13.4% |
Capital Plus
This fund is for long-term investors seeking steady, inflation-beating growth with less volatility than a typical balanced fund. It invests across shares, bonds, property, and cash — locally and offshore — while prioritising consistent returns and a smoother journey through market cycles.
- Aims for steady medium- to long-term growth with less volatility than typical balanced funds
- Diversified across shares, bonds, property, and cash, locally and offshore
- Regulation 28 compliant
Risk rating
Minimum investment term
3 years +
Try our investment calculator
Click here to see the returns of this fund if you had invested sooner
View fund performance
Invest in this fund
Capital Plus
The fund is in the first instance managed to achieve reasonable investment growth over the medium to long term. Our intent is that the fund should produce an annualised return of at least inflation plus 4% over time. In addition, we aim to achieve less volatility than the average balanced fund. It is specifically managed to suit investors who want to draw an income over an extended period of time.
Investor profile
The fund is suitable for investors: Seeking a risk-conscious investment solution enabling an annual income drawdown over an extended period of time. Requiring a reasonable rate of real return over investment horizons of between 3 and 5 years, achieved at less volatility than that of the average balanced. When your objective is to accumulate capital over the long term, the fund is only suitable if a strong focus on managing downside risk and volatility is a priority. This fund can invest in a wide range of assets, such as shares, bonds, listed property and cash, both in South Africa and internationally, in a manner similar to that usually employed by retirement funds.
Benchmark
CPI + 4% p.a.
Risk rating
Minimum investment term
3 years +
Exposure to growth assets
Maximum: 75%
Annualised past performance (after fees)
| Returns | Fund | CPI | REAL RETURN |
|---|---|---|---|
| Since Launch (unannualised) | 1,302.5% | 267.8% | 1,034.7% |
| Since Launch (annualised) | 11.5% | 5.5% | 6.0% |
| Latest 20 years (annualised) | 10.1% | 5.4% | 4.6% |
| Latest 15 years (annualised) | 9.2% | 5.0% | 4.2% |
| Latest 10 years (annualised) | 8.6% | 4.8% | 3.8% |
| Latest 5 years (annualised) | 13.3% | 4.9% | 8.4% |
| Latest 3 years (annualised) | 17.2% | 4.1% | 13.1% |
| Latest 1 year | 18.8% | 3.1% | 15.7% |
| Year to date | 14.7% | 3.1% | 11.6% |
Balanced Defensive
This fund is for investors seeking steady growth while protecting their capital. It invests in a cautious mix of shares, bonds, property, and cash — locally and globally — while prioritising low volatility.
- Seeks to protect capital over any 12-month period
- Up to 50% in growth assets
- Regulation 28 compliant
Risk rating
Minimum investment term
3 years +
Try our investment calculator
Click here to see the returns of this fund if you had invested sooner
View fund performance
Invest in this fund
Balanced Defensive
The fund is in the first instance managed to protect capital over any twelve-month period. In addition, we aim to achieve reasonable investment growth over the long run. It is specifically managed to suit very cautious investors who want to draw an income over an extended period of time.
Investor profile
The fund is suitable for investors: Seeking a defensive investment solution enabling an annual income drawdown. Requiring a reasonable rate of return over investment horizons of 3 years and longer. With a low tolerance for the volatility of returns associated with equity investing. This fund is not suitable for investors seeking to aggressively accumulate capital over an extended period of time.
Benchmark
CPI + 3% p.a
Risk rating
Minimum investment term
3 years +
Exposure to growth assets
Maximum: 50%
Annualised past performance (after fees)
| Returns | Fund | CPI | REAL RETURN |
|---|---|---|---|
| Since Launch (unannualised) | 445.0% | 171.5% | 273.5% |
| Since Launch (annualised) | 9.6% | 5.5% | 4.0% |
| Latest 15 years (annualised) | 9.5% | 5.0% | 4.4% |
| Latest 10 years (annualised) | 8.5% | 4.8% | 3.7% |
| Latest 5 years (annualised) | 11.3% | 4.9% | 6.4% |
| Latest 3 years (annualised) | 14.6% | 4.1% | 10.5% |
| Latest 1 year | 15.7% | 3.1% | 12.6% |
| Year to date | 11.9% | 3.1% | 8.8% |
Popular funds
See all popular Coronation unit trust funds suitable for Preservations
Invest Now
Download our application form to transfer your pension or provident fund to a Coronation preservation fund.
Investment quote
Create a summary of your prospective investment. This is a useful document for comparisons prior to investing.
Frequently asked questions
Coronation does not charge initial, account or transaction fees on its Preservation Funds. Your full investment goes into buying units in your chosen fund(s).
Each fund has an annual management fee, which covers professional investment management and administration. All fees are fully disclosed on each fund’s fact sheet and on our website.
If you have a financial adviser and agree to a fee with them, we can deduct it from your account and pay it directly to your adviser.
You can retire from these funds after your 55th birthday. If you are permanently disabled due to injury or illness, you may be allowed to retire from the fund early (i.e., before the age of 55).
When you withdraw prior to retirement
Any benefits you take are taxed according to SARS’s withdrawal lump sum benefits tax tables. Read more about specific taxes in the following section.
At retirement
Any cash lump sum is taxed according to SARS’s retirement tax tables. Your monthly pension (retirement income) is taxed at your marginal income tax rate.
Before retirement
- Vested Component
If you have not made any withdrawals, you may take one withdrawal of up to 100%. This is taxed according to the withdrawal lump sum benefits tax tables. - Retirement Lump Sum Component
If not fully accessed in your original retirement fund, you may make one withdrawal per tax year (minimum R2,000), if there are funds available. This withdrawal is taxed at your marginal tax rate.
At retirement
You may withdraw:
- The full value in your Retirement Lump Sum Component (if funds are available).
- A portion of your Vested Component (if applicable).
The balance of your investment must be used to buy a post-retirement income (e.g. Coronation Living Annuity or a guaranteed life annuity) from a registered insurer.
Special note: Monies invested into a Provident Fund before March 2021 can be withdrawn in full and do not need to be annuitised.
No. After you turn 55, it is up to you to decide when to retire and start drawing an income. The longer you delay the drawdown of income, the longer your investment can grow, and the longer your retirement income could last you.
No. If you wish to make ongoing contributions to your retirement savings and don’t have a new employer fund, consider investing in a Retirement Annuity.
Yes. You may switch between the underlying unit trust funds as your investment objectives and circumstances change.
Yes. You may transfer between an external Preservation Fund and the Coronation Preservation Pension Fund or Coronation Preservation Provident Fund. Please note that the transfer is for the full benefit amount and may not be split across different preservation funds.
No. You may not cede your investment in the Coronation Preservation Pension Fund or the Coronation Preservation Provident Fund, nor use it as security for personal debt. Your benefits within the funds are protected and may not be attached by your creditors for an outstanding debt commitment.
No.
In the event of your death before retirement, the proceeds of your investment in the Coronation Preservation Funds will be distributed to your dependents or nominees, who may elect to take the benefit as a cash lump sum (which may be subject to tax) or purchase an annuity of their choice. The trustees of the Fund are required to investigate the claim, determine who your dependents are, consider the beneficiary nominations you have made and make payment according to S37C of the Pensions Funds Act.