2018 The Income And Growth Challenge - September 2018


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Managing these risks in retirement - September 2018

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Coronation Insights

Coronation Insights

Coronation offers two funds that meet the needs of income and growth investors – Coronation Balanced Defensive and Coronation Capital Plus. The funds’ risk budgets are designed to provide optimal outcomes by balancing the quest for attractive levels of real return over the long term with minimising the risk of capital loss over the short term.

Balanced Defensive can invest a maximum of 50% in growth assets and is managed to deliver positive returns over any 12-month period with a high degree of probability.

It is consistently one of the top performers in the ASISA Multi Asset – Low Equity category. Since inception in February 2007 (to end-July 2018), Balanced Defensive has produced a nominal after-fees return of 9.8%1 p.a. (or 3.6% p.a. in real terms) at a standard deviation of 4.1%. The fund currently maintains a 40.1% exposure to growth assets.

Capital Plus has a risk budget suitable to income and growth investors with longer time horizons.

Up to 70% (currently 60.4%) of the portfolio can be invested in growth assets and despite its larger risk budget, the portfolio also aims to preserve capital over any 18-month period. It has produced a nominal after-fees return of 12.2%2 p.a. (or 6.2% p.a. in real terms) since its inception in July 2001 at a standard deviation of 6.8%.

Balanced Defensive - highest annual return: 21.2% (Jun 2012 - May 2013); Lowest annual return: 2.0% (Mar 2008 - Feb 2009).
Capital Plus - highest annual return: 33.8% (Aug 2004 - Jul 2005); Lowest annual return: -6.2% (Nov 2007 - Oct 2008).