2018 Investing Offshore - July 2018
2018 JULY: INVESTING OFFSHORE
Our investment philosophy and approach - July 2018
Coronation has a proven track record of alpha generation in global markets. All our international funds are managed according to the same long-term, valuation-driven investment philosophy that we have applied locally for the past 25 years. While most managers face enormous pressure to perform well over 12-month periods – typically resulting in poor long-term decisions – our ability to focus on a time horizon of five years and longer allows us to invest in assets that we believe are trading at substantial discounts to our assessment of their underlying long-term value.
Based in Cape Town, our integrated global investment team is one of the only investment teams in the world with three former CIOs still actively managing money. Led by chief investment officer Karl Leinberger, the team comprises 66 professionals, with an average of 13.1 years in the industry and almost 10 (9.6) years with Coronation.
Our developed markets equity team of eight analysts is headed by former Coronation CIO Louis Stassen, and is closely integrated with our global emerging markets team of nine, led since inception, by senior portfolio manager Gavin Joubert. Our proven multi-asset capabilities have resulted in strong outcomes for investors over the past quarter of a century. This expertise is evident in the track record of our global multi-asset funds among international peers as shown in Figure 4 and 5 below.
Their efforts are supported by our global multi-manager team, led by another former Coronation CIO Tony Gibson. This team continues to be responsible for the core global equity building block used in our domestic multi-asset funds such as Coronation Balanced Plus. Further depth is provided by the Africa & Frontier Markets team that consists of five analysts.
We believe in a team-based approach to investing rather than relying on specialist silos where investment decisions are made in a vacuum. Our entire investment team – covering the South African and global markets – sit together in one open-plan office. They are constantly interacting and exchanging investment information. Also, our analysts and fund managers each cover a wide range of investments, across different industries and countries. Our investment professionals can ‘price profit and risk’ across asset classes, sectors and geographies. We believe this broader perspective builds better investors, drives better debate and results in better investment decisions. Our team-based and generalist approach has contributed to the stability of our investment process.
Figure 4: CORONATION GLOBAL CAPITAL PLUS (ROLLING 3-YEAR RETURN VS PEERS)*
Figure 5: CORONATION GLOBAL MANAGED (ROLLING 5-YEAR RETURN VS PEERS)*
With analysts covering a wide range of companies in different sectors, there are no gaps in research coverage in the event of occasional departures from the team. We believe this commitment to sustainability will contribute to the delivery of continuing superior investment results in the decades to come.