Coronation's Income and Growth Solutions - May 2016
Coronation offers two funds that meet the needs of income and growth investors – Balanced Defensive and Capital Plus. The funds’ risk budgets are designed to provide optimal outcomes by balancing the quest for attractive levels of real return over the long term with minimising the risk of capital loss over the short term.
Balanced Defensive can invest a maximum of 40% (currently 38.1%) in growth assets and is managed to deliver positive returns over any 12-month period with a high degree of probability. It is consistently one of the top performers in the Multi Asset – Low Equity category. Since inception in February 2007, Balanced Defensive has produced a nominal after-fees return of 10.8% p.a. (or 4.4% p.a. in real terms) at a standard deviation of 4.0%.
Capital Plus has a unique risk budget and is optimised for income and growth investors with longer time horizons.
Up to 60% (currently 55.9%) of the portfolio can be invested in growth assets and despite its larger risk budget, the portfolio also aims to preserve capital over any 12-month period. It has produced a nominal after-fees return of 13.5% p.a. (or 7.4% p.a. in real terms) since its inception in 2001 at a standard deviation of 7.0%.