Investing for long-term capital growth - November 2021
November 2021: Corolab Investment Guide. Investing for long-term capital growth
Investing for the long term with Coronation - November 2021
Depending on your specific goal (and investment horizon), we offer a range of funds 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 (see table on page 13).
We offer two equity (single-asset class) portfolios that pursue market-beating returns over the long term for investors who 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 and has a 21-year track record of adding meaningfully to an investor’s long-term wealth creation.
Due to Top 20’s 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.
We also offer a worldwide multi-asset portfolio 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. When investing in Coronation Market Plus, investors gain access to our best views across all asset classes limited to a maximum offshore investment of 40%.