Investing Offshore - August 2020
August 2020 - Corolab Investment Guide
How we invest offshore - August 2020
We manage all our international funds according to the same proven longterm, valuation-driven investment philosophy that we have applied locally for more than 27 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 teams in the world with three former chief investment officers (CIOs) still actively managing money. Led by CIO Karl Leinberger, the team comprises 70 professionals, with an average of more than 14 years in the industry and just over 10 years with Coronation. Our developed markets equity team of seven analysts is headed by Neil Padoa and supported by former Coronation CIO Louis Stassen. The development markets team is also closely integrated with our global emerging markets team of 10, led since inception by Gavin Joubert. Their efforts are also 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, namely Coronation Balanced Plus. Further depth is provided by the five analysts in our Global Frontier Markets team.
70 investment professionals with >980 years’ collective experience
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 South African and global markets – constantly interact and exchange investment information. Our analysts and fund managers each cover a wide range of investments, across different industries and countries. They 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 teambased and generalist approach has contributed to the stability of our investment process.
Two decades of creating significant value in global multi-asset class portfolios
Our proven multi-asset capabilities across global markets have generated significant value for investors over the long term, as demonstrated by the track record of Coronation Optimum Growth (Figure 3). Having pioneered the uniquely flexible worldwide multi-asset mandate 21 years ago, the Fund is an aggressive long-term portfolio that invests in the best opportunities selected from local, emerging and developed markets. As at end-July 2020, the retail class of the Fund had:
- outperformed global equities (as measured by the MSCI World Index) by 4.3% p.a. since inception, resulting in a current investment value more than double that of an investment in the index, delivered with significantly less volatility.
- outperformed local inflation by 9% p.a. since inception; and
- ranked first in its Morningstar category over all periods of 7 years and longer, while outperforming more than 90% of all competitors over the last 1, 3 and 5 years. (Source: Morningstar)
The breadth and depth of our investment team’s expertise is also evident in the 10-year track records of our pure global multi-asset funds among international peers (see Figures 4 and 5).