Increasing exposure to alternative sources of return - May 2020

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Coronation Insights

Coronation Insights

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Investors are not always rewarded for the additional risk of diversifying into other asset classes. A positive or negative contribution from these asset classes will depend on the prevailing market environment. Figure 3 below illustrates how often some of the asset classes detailed on page 7 have outperformed cash by 2% (the internal target of the Coronation Strategic Income Fund). Our view of changing market conditions, and how we respondin the positioning of our managed income funds, is therefore critical to successful outperformance over time.

FIGURE 3

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