Long-term capital growth

Investing long-term capital growth - October 2019

2019 OCTOBER - Long-term capital growth

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Investing for long-term capital growth with Coronation - October 2019

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Coronation Insights

Coronation Insights

Investors invest for the long term for different reasons. It may be for discretionary purposes, such as your child’s education in five to 10 years’ time, or for your retirement, which may be multiple decades (30 to 40 years) in the future. Depending on your specific goal (and investment horizon), we offer a range offunds aimed at meeting the needs of investors who want to achieve long-term capital growth.

Regardless of your chosen investment approach (balanced fund or DIY portfolio), your underlying investment portfolio needs to comply with Regulation 28 of the Pension Funds Act, which allows you to invest up to 75% in equities and a maximum of 30% in international assets. We do believe that the majority of investors are better off investing in a multi-asset fund with a strong track record, such as Coronation Balanced Plus

SINGLE-ASSET CLASS

We offer two equity (single-asset class) portfolios that pursue market-beating returns over the long term for investors that are able to withstand short-term market turbulence. These funds are not suited to investors who are concerned
about short-term capital losses or who want to generate consistent income. The Coronation Top 20 Fund is a concentrated portfolio that consists of no more than 20 of our best SA equity ideas. As a result of its concentrated nature, the fund is not suitable for those who seek an equity investment that
tracks the returns of the market. Coronation Equity is less concentrated than Coronation Top 20, making it more suitable for investors holding only one equity fund. The fund may underperform the market in the short term in pursuit of superior long-term gains.

MULTI-ASSET CLASS

We also offer two worldwide multi-asset portfolios for investors looking to build up capital outside of a retirement fund, but who prefer to leave the asset allocation decision-making to the skilled portfolio manager. In the case of Market Plus, investors gain access to our best views across all asset classes limited to a maximum offshore investment of 40%. In the case of Optimum Growth, investors look to access Coronation’s best long-term views without any geographical constraints, allowing Coronation the discretion to invest up to 100% of the portfolio offshore.

Refer to the fund information table

Investors who wish to invest for long-term capital growth in one of our international funds, can download our Offshore Investing Corolab from coronation.com.