Increasing exposure to alternative sources of return - April 2019
Investors are not always rewarded for the additional risk taken or for diversifying into other asset classes. A positive or negative contribution from these asset classes will depend on the prevailing market environment. Figure 1 below illustrates how often some of the asset classes detailed above have outperformed cash by 2% (the internal target of the Coronation Strategic Income Fund). Our view of changing market conditions, and how we respond in the positioning of our managed income funds, is therefore critical to successful outperformance over time.
FIGURE 1 - PERCENTAGE OF MONTHS ASSET CLASS EXCEEDS CASH BY 2% OR MORE