Investing Offshore

2019 Investing Offshore - July 2019


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Investing offshore with Coronation

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Coronation Insights

Coronation Insights

Investors have different ways through which to gain international exposure with Coronation. Most of our flagship domestic multi-asset funds already have a considerable international allocation. We also offer a range of funds (rand-denominated or foreign-domiciled) that are invested in global markets. Below we discuss these options in more detail.

Pension funds are currently allowed a maximum offshore allocation of 30% (with an additional 10% in other African markets). This level of exposure to offshore assets may be sufficient for investors who: 

  • only have the budget to save for their retirement and do not plan to make any other discretionary investments; or 
  • have both income and growth needs and/or a short investment horizon.

Our domestic multi-asset funds (Balanced Plus, Capital Plus and Balanced Defensive) are mandated to hold the maximum allowable offshore allocation on behalf of investors (refer to Figure 6).

We offer two multi-asset funds optimised for long-term discretionary investors who are not subject to retirement fund investment restrictions. Market Plus can invest up to 40% offshore, while investors requiring an unconstrained mandate can consider Optimum Growth. The fund will typically invest between 50% and 90% of its portfolio in international assets.

Optimum Growth truly celebrates active investing. The fund can invest in any listed asset from anywhere in the world, benefiting from the breadth and depth of our global investment team covering equities, bonds and property across the domestic, international developed, emerging and frontier markets. While it is an equity-centric solution, allocation to other asset classes will be informed by valuations. The fund does not target strategic asset allocation.

These investors may consider further increasing their offshore exposure, and diversifying their portfolios with access to other regions and currencies of the world, by investing in a rand-denominated or foreign-domiciled international fund: